Valuing Inventory and Recording Entries Using Relative Sales Value Method AVC Inc. purchased 1,440 bags of pecans that cost $5,040. The company also incurred $360 for transportation and grading. The relative sales value method is used to allocate the lump sum cost. The pecans graded out as follows. 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, 120 bags; grade B, 96 bags; and grade C, 48 bags. c. Prepare the entry for sale of 24 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