February 2: Purchase of Pistachios: 2.500Kg@10$/Kg $ 25.000

Purchase of Almonds: 4.000Kg @ 5$/Kg $ 20.000

Purchas of Peanuts: 6.000Kg @ 3$/ Kg $ 18.000

February 3: Purchase of Pistachios: 1.500Kg@12$/Kg $18.000

Purchase of Almonds: 2.000Kg @ 6$/Kg $ 12.000

Purchas of Peanuts: 2.000Kg @ 4$/ Kg $ 8.000

February 6: Sold to several clients:

Pistachios: 2.000Kg@ 20$/Kg $40.000

Almonds: 2.500Kg @ 11$/Kg $ 27.500

Peanuts: 3.000Kg @ 7$/ Kg $ 21.000

February 6: Sold to Fruits Lovers Inc.:

Pistachios: 500Kg @20$/Kg. $ 10.000

Almonds: 1.000Kg @ 11$/Kg $ 11.000

Peanuts: 1.500Kg @ 8$/ Kg $ 12.000

February 12Purchase of Pistachios: 1.500Kg@14$/Kg $ 21.000

Purchase of almonds: 2.000Kg @ 8$/Kg $ 16.000

February 13: Sale of peanuts to Peanuts Lovers Inc.: 3.500Kg @8$/kg $ 28.000

February 14: Purchase of Peanuts 6.000 Kg @4$/Kg $24.000

February 19: Sold to several clients:

Pistachios: 1.000Kg@ 21$/Kg. $ 21.000

Almonds: 1.500Kg @ 13$/Kg $ 19.500

Peanuts: 3.000Kg @ 9$/ Kg $ 27.000

February 25: Purchased from various suppliers:

Pistachios: 1.000Kg@13$/Kg. $ 13.000

Almonds: 1.000Kg @ 9$/Kg $ 9.000

Peanuts: 1.000Kg @ 4$/ Kg $ 4.000

2: Prepare an Income statement of the company at the end of February using as method of valuation of the inventory the average cost method, FIFO and LIFOfor each one of the products sold by Jim, and calculate the balance of the inventory at the end of the month. Explain the calculations. (40 points: 30 points for the calculation and 10 for explanations)

3: In order to compare with the records made by his accountant, Jim asks you to prepare the different journal entries for the purchases and sales mentioned above for each one of the 3 different methods used above. (15 points)

4: Jims accountant insisted that he should use a perpetual inventory system instead of a periodic inventory system and the average cost method for valuating the inventory. Do you agree with this advice (justify your answer)? Would the balance of the inventory at the end of the month be the same? And the net income? (15 points)