Valuing Inventory and Recording Entries Using Relative Sales Value Method AVC Inc. purchased 1,680 bags of pecans that cost $5,880. The company also incurred $420 for transportation and grading. The relative sales value method is used to allocate the lump sum cost. The pecans graded out as follows Grade Quantity (bags) Current Market Price per Bag B 560 840 C 140 140 $6.75 6.00 450 0.00 Required a. Prepare the purchase entry assuming a perpetual inventory system b. Determine the value of ending inventory assuming the following quantities are in inventory at year-end grade A 140 bags; grade B 112 bags and grade C56 bags Prepare the entry for sale of 28 bags of grade A pecans at a market price of $6.75 cash per bag Note: Carry all decimals in calculations; round the final answer to the nearest dollar a. Inventory-Grade A Inventory-Grade B Inventory-Grade C Accounts Payable Account Name To record the purchase of inventory b. Inventory-Grade A $ 588 x Inventory-Grade B 418 x Inventory-Grade C 157 * Total 1,163 x Account Name c. Cash Cost of Goods Sold Sales Inventory-Grade A To record the sale of pecans. < > < < < Dr. Dr. 2,268 3,136 Cr. 0x 0x 420 0 0 6,300 189 0 L 0 40 Cr. 0 0* 189 0%