please give explaination and calculations for Q2 and Q5
Im has recently opened a dry fruits wholesale company dedicated to the sale of peanuts, almonds and this Durings first month of activity. The company has made the following transaction February 2: Purchase of Portachi Purchase of Almond 50.000 S. $80,000 $14 $16.000 February Purchase of the Purchase of mond Purches of Peanut FebruarySold to several dients: Almond $13 $27,000 February & Sold Fruits Loversine $11.000 $12.000 $13 $10 S4.000 $10 Pistachio Almond 1500 February 12 Purchase of Pistachios 1500 Purchase of almonds February 13 Sale of peanuts to Peanuts Lovers inc: 3500 February Purchase of us February Sold to several dients 1500 $10 $ $22.00 February 25 Purchased from various 1000 SIS $11 $15,000 $11.000 Salaris: Renting somente Rent of warehouse and office $1.650 Miscellaneous: $1.250 Tim's accountant recommended that he should use the average cost method in order to determine the cost of the inventory old but he is not sure about the Relying on your accounting knowledge masks you the following question 1: Why in your opinion didn's account recommend the average cost method and what difference is there with the three other methods? Explain the main characteristics of each method of valuation of the inventory and the conces they may have on the valuation of the story and determination of the net income in case of price fructuation points 2. Prepare an income statement of the company at the end of February using as method of valuation of the investory the werage cost method, and of each one of the products sold bym, and calculate the balance of the inventory at the end of the month lain the calculations points for the calculation and 10 for explorations 3. In order to compare with the records made by ha accountant, limasks you to prepare the different journal entries for the purchases and sales mentioned above for each one of the different methods used above. Spoel 4's accountant insisted that he should use a perpetual inventory tematead of a periodic inventory system and the iwverage cost method for iting the Inventory. Do you agree with this advice tify your answer? Would the balance of the inventory at the end of the month be the same? And the net income? (5 points Sam would like to know a forecast of the number of days to well the inventory based on the results of the month of February. Explain your calculation and the steps followed. (10 points for calculation and for explanation 6.Jim expects that the prices of the merchandises wil dramatically decrease in the next fe as a result of the Covid 19 is Which method of valuation of the Inventory would you thus recommend tom? Explain your answer is on Im has recently opened a dry fruits wholesale company dedicated to the sale of peanuts, almonds and this Durings first month of activity. The company has made the following transaction February 2: Purchase of Portachi Purchase of Almond 50.000 S. $80,000 $14 $16.000 February Purchase of the Purchase of mond Purches of Peanut FebruarySold to several dients: Almond $13 $27,000 February & Sold Fruits Loversine $11.000 $12.000 $13 $10 S4.000 $10 Pistachio Almond 1500 February 12 Purchase of Pistachios 1500 Purchase of almonds February 13 Sale of peanuts to Peanuts Lovers inc: 3500 February Purchase of us February Sold to several dients 1500 $10 $ $22.00 February 25 Purchased from various 1000 SIS $11 $15,000 $11.000 Salaris: Renting somente Rent of warehouse and office $1.650 Miscellaneous: $1.250 Tim's accountant recommended that he should use the average cost method in order to determine the cost of the inventory old but he is not sure about the Relying on your accounting knowledge masks you the following question 1: Why in your opinion didn's account recommend the average cost method and what difference is there with the three other methods? Explain the main characteristics of each method of valuation of the inventory and the conces they may have on the valuation of the story and determination of the net income in case of price fructuation points 2. Prepare an income statement of the company at the end of February using as method of valuation of the investory the werage cost method, and of each one of the products sold bym, and calculate the balance of the inventory at the end of the month lain the calculations points for the calculation and 10 for explorations 3. In order to compare with the records made by ha accountant, limasks you to prepare the different journal entries for the purchases and sales mentioned above for each one of the different methods used above. Spoel 4's accountant insisted that he should use a perpetual inventory tematead of a periodic inventory system and the iwverage cost method for iting the Inventory. Do you agree with this advice tify your answer? Would the balance of the inventory at the end of the month be the same? And the net income? (5 points Sam would like to know a forecast of the number of days to well the inventory based on the results of the month of February. Explain your calculation and the steps followed. (10 points for calculation and for explanation 6.Jim expects that the prices of the merchandises wil dramatically decrease in the next fe as a result of the Covid 19 is Which method of valuation of the Inventory would you thus recommend tom? Explain your answer is on
