Question one only C QUESTION 2 AND 3 if possible

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 THE NUTHOUSE and wealth of knowledge in the industry led to TheNuthouse expanding rapidly, Since 2020 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: ke Price per kg Amount February 1: Purchase of stock 3000 4500 6500 $11 $6 $33 000 $27 000 $26000 $4 Purchase of Pistachios Purchase of Almonds: Purchase of Peanuts: February 2: Purchase of stock Purchase of Pistachios Purchase of Almonds: : Purchase of Peanuts: $13 2000 2 500 3000 $7 $5 $26000 $17500 $15 000 2500 3000 $21 $12 $8 $52 500 $36 000 $28 000 3 500 February 4: Sold to several clients Sale of Pistachios: Sale of Almonds: Sale of Peanuts: February 5: Sold to Fruits Lovers Inc. Sale of Pistachios: Sale of Almonds : Sale of Peanuts: : February 11: Purchase of stock Purchase of Pistachios Purchase of almonds: 1000 1 500 2000 $21 $12 $9 $21000 $18 000 $18 000 $15 2000 2 500 $30 000 $22 500 $9 4000 $9 $36 000 6500 $5 $32500 February 12: Sale to Peanuts Lovers Inc. Sale of Peanuts: : February 13: Purchase of stock Purchase of Peanuts February 18: Sold to several clients Sale of Pistachios: Sale of Almonds: Sale of Peanuts: 1 500 $22 $33 000 2000 3500 $14 $ $10 $28 000 $35 000 February 24: Purchased from various suppliers 1500 Purchase of Pistachios: Purchase of Almonds: : $14 $10 $5 $21000 $15 000 1500 Purchase of Peanuts: 1500 $7500 Over and above these transactions, the company has had the following expenses: Salaries Electricity bill Rental expense: Equipment Rental expense: Warehouse and office Miscellaneous expenditure Rental income: Subletting of office space to Fruity Loops Inc. $5 650 $560 $1 150 $1550 $1050 $2500 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 Julia asks you the following questions: QUESTION 1 a. Why in your opinion did Julia's accountant recommend the average cost method? b. Name and explain the main characteristics of the 3 methods of valuation of the inventory. c. Explain the consequences each valuation method may have on the valuation of the inventory in the above scenario and the determination of the net income in case of price fluctuation 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. 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 using the FIFO method valuation