Question 1 :

c. Explain the consequences each valuation methodmay have on the valuation of the inventory inthe above scenario and the determination of thenet income in case of price fluctuation

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.

Oyer and above these trantactions, the compuny has bud the following eypenvert Over and above these transactions, the company has had the following expenses: 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 produets sold by Julia using the following methods of valuation of the inventory: You can ignore all tax consequences. 3. 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. Oyer and above these trantactions, the compuny has bud the following eypenvert Over and above these transactions, the company has had the following expenses: 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 produets sold by Julia using the following methods of valuation of the inventory: You can ignore all tax consequences. 3. 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