Natalie is busy establishing both divisions of her business $($cookie classes and mixer sales. 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 the shipping costs in the negotiated purchase price $($mixers will be shipped FOB destination$),$ but the supplier cannot guarantee the invoice price. Natalie has decided to use a periodic inventory system and now must choose a cost flow assumption for her mixer inventory. The following transactions occur in February to May $2021.$

Feb$\mathrm{.}2$ Natalie buys two deluxe mixers on account from Kzinski Supply Co$.$ for $$1,150(575$ each$),$ FOB destination, terms n$/30.$

Feb $16$ She sells one deluxe mixer for $$1,100$ cash.

Feb$\mathrm{.}25$ She pays the amount owed to Kzinski.

Mar. $2$ She buys one deluxe mixer on account from Kzinski Supply Co$.$ for $$592,$ FOB destination, terms n$/30.$

Mar $30$ Natalie sells two deluxe mixers for a total of $$2,200$ cash.

Mar $31$ She pays the amount owed to Kzinski

Apr. $1$ She buys two deluxe mixers on account from Kzinski Supply Co for $$1,172(586$ each$),$ FOB destination, terms n$/30.$

Apr $13$ She sells three deluxe mixers for a total of $$3,300$ cash.

Apr $30$ Natalie pays the amount owed to Kzinski.

May $4$ She buys three deluxe mixers on account from Kzinski Supply Co$.$ for $$1,800($$$600$ each$),$ FOB destination, terms n$/30$

May $27$ She sells one deluxe mixer for $ $1,100.$

a$.$ Prepare journal entries for each of the transactions.

b$.$ Determine the cost of goods available for sale. Recall from Ch$.5$ that at the end of January, Cookie Creations had three mixers on hand at the cost of $$570$ each.

c$.$ Calculate $($i$)$ending inventory, $($ii$)$ costs of good sold, $($iii$)$ gross profit $($iv$)$ gross profit rate under each of the following LIFO, FIFO, and average cost. $($Round average unit cost to three decimal places. 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 and why?