Valuing Inventory and Recording Entries Using Relative Sales Value Method AVC Inc. purchased 4,800 bags of pecans that cost $16,800. The company also incurred $1,200 for transportation and grading. The pecans graded out as follows. Grade Quantity (bags) Current Market Price per Bag 1,600 $6.75 A B 2,400 6.00 400 4.50 Waste 400 Required Assume the relative sales value method is used to allocate lump sum costs. a. Prepare the purchase entry assuming a perpetual inventory system. b. Determine the value of ending inventory assuming the following quantities are in inventory: grade A, 400 bags; grade B, 320 bags; and grade C, 160 bags. C. Prepare the entry for sale of 80 bags of grade A pecans at a market price of $6.75 cash per bag. Carry all decimals in calculations; round the final answer to the nearest dollar. Account Name Dr. Cr. a. Inventory-Grade A Inventory-Grade B Inventory-Grade C b. Inventory-Grade A $ Inventory-Grade B Inventory-Gradec Total $ Account Name Dr. Cr. C. Cash Inventory