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$360for 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$6.75cash per bag. Note: Carry all decimals in calculations; round the final answer to the nearest dollar.
