continuing cookie chronicle chapter

Adam Frazer Chapter6 Continuing Cookie Chronicle Natalie is busy establishing both divisions of her business (cookie classes and mixer sales) and completing her business degree. Her goals for the next 11 months are to sell one mixer per month and to give two to three classes per week The cost of the fine European mixers is expected to increase. Natalie has just negotiated new terms with Kzinski that include shipping costs in the negotiated purchase price (mixers will be shipped FOB destination), but the supplier cannot guarantee the invoice price The following transactions occur in February to May 2018. Feb. 2 Natalie buys two deluve micers on account from Kzinski Supply Co. for $1,150 (5575 each) FOB destination, terms n/45. 16 She sells one deluxe mibxer for $1,100 cash. (Log both FIFO and LIFO) 20 She pays the amount owed to Kzinski. 2 Mar. She buys one deluxe mixer on account from Kzinski Supply Co. for $592, FOB destination, terms n/30. 31 She pays the amount owed to Kzinski. She buys two deluxe mixers on account from Kzinski Supply Co. for $1,172 ($586 each), FOB destination, terms n/30. Apr. 1 4 27 Instructions May She buys three deluxe mixers on account from Kzinski Supply Co. for $1,800 ($600 each), FOB destination, terms n/30. She sells three deluxe mixers for $3,300 cash. (Log both FIFO and LIFO) (a) Prepare journal entries for each of the transactions. (b) What would be the average cost per unit? (c) Calculate the value of ending inventory using (1) FIFO, (2) LIFO, and (3) Avg Cost (d) Natalie is thinking of getting a bank loan. If this is the only factor Natalie has to consider in choosing an inventory cost flow assumption, which cost flow assumption would you recommend that Natalie use? Why