Julia has recently opened a dry fruits wholesale company dedicated to the sale of peanuts, almonds and pistachios. The companys name is The Nuthouse.The Nuthouse was founded during 2020. Julias passion, longevity and wealth of knowledge in the industry led to The Nuthouse expanding rapidly, creating a network of partners that spans farming operations in the key growing territories of South Africa, Australia, Kenya, Malawi, Zimbabwe, Mozambique and Brazil.

During February, its first month of activity, The Nuthouse made the following transactions:

In order to compare with the records made by her accountant, Julia asks you to prepare the journal entries for all the purchases and sales of the products using the FIFO method valuation.QUESTION 2

Prepare an Income statement of the company at the end of February for each one of the products sold by Julia using the following methods of valuation of the inventory: You can ignore all tax consequences.

1. The average cost method
2. FIFO method and

Calculate the balances of the inventory at the end of the month for each valuation method and provide explanations of the calculations.

QUESTION 3

In order to compare with the records made by her accountant, Julia asks you to prepare the journal entries for all the purchases and sales of the products using the FIFO method valuation.