Question: Valuing Inventory and Recording Entries Using Relative Sales Value Method AVC Inc. purchased 2.880 bags of pecans that cost $10,080. The company also incurred

Valuing Inventory and Recording Entries Using Relative Sales Value Method AVC Inc. purchased 2.880 bags of pecans that cost $10,080. The company also incurred $720 for transportation and grading. The relative sales value method is used to allocate the lump sum cost. TW i Grade Quantity (bags) Current Market Price per Bag 960 1440 C 240 Wate 240 $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, 240 bags: grade B, 192 bags; and grade C. 96 bags c. Prepare the entry for sale of 46 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, Account Name To record the purchase of inventory. b Inventory-Grade A Inventory-Grade B ventory-Grade C Total 0 1 0 Cr. Account Name Dr. Cr. 0 0 0 0 Eurecont the sale of pecans Check 0 MacBook Pro

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