(Solution) - Information is presented in EB 16 on the inventory of mini -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Pages: 5 Words: 1375

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Information is presented in EB-16 on the inventory of mini kettles at Funnell Company Limited for the month of May.
Instructions
(a) Assuming that the perpetual inventory method is used, calculate the inventory cost at May 31 under each of the following cost flow formulas:
1. FIFO
2. Moving average (round all unit costs to the nearest one tenth of one cent)
(b) Indicate where the inventory costs that were calculated in this exercise are different from the ones in EB-16 and explain the possible reasons why.