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 theinventory: You can ignore all tax consequences.
a. The average cost method
b. 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 productsusing the FIFO method valuation.
PLEASE CLEAR ANSWERS
Summative Assessment 2 - Business Case Julia has recently opened a dry fruits wholesale company dedicated to the sale of peanuts, almonds and pistachios. The company's name is "The Nuthouse".The Nuthouse was founded during 2020. Julia's 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: Over and above these transactions, the company has had the following expenses: Over and above these transactions, the company has had the following expenses: The company's accountant recommended that they should use the average cost method in order to determine the cost of the inventory sold but he is not sure about the consequences it may have on their financial situation. The GBSB Accounting class of the 2021 Fall semester decided to create a network of students that provide companies with a second opinion based on their technical know-how in accounting. This company is called "Global Accountants Inc." and was created to assist company's in understanding and accounting for their business transactions accurately - the students are at the forefront of technical accounting concepts, especially after their recent studies in Inventory processes and valuation methods. Julia wanted a second opinion and has found your advisory services online. Relying on your accounting knowledge, Julia asks you the following questions: 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. a. The average cost method b. 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 Summative Assessment 2 - Business Case Julia has recently opened a dry fruits wholesale company dedicated to the sale of peanuts, almonds and pistachios. The company's name is "The Nuthouse".The Nuthouse was founded during 2020. Julia's 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: Over and above these transactions, the company has had the following expenses: Over and above these transactions, the company has had the following expenses: The company's accountant recommended that they should use the average cost method in order to determine the cost of the inventory sold but he is not sure about the consequences it may have on their financial situation. The GBSB Accounting class of the 2021 Fall semester decided to create a network of students that provide companies with a second opinion based on their technical know-how in accounting. This company is called "Global Accountants Inc." and was created to assist company's in understanding and accounting for their business transactions accurately - the students are at the forefront of technical accounting concepts, especially after their recent studies in Inventory processes and valuation methods. Julia wanted a second opinion and has found your advisory services online. Relying on your accounting knowledge, Julia asks you the following questions: 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. a. The average cost method b. 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
