The following information is for the inventory of mini kettles
The following information is for the inventory of mini kettles at Funnell Company Limited for the month of May:
Instructions
(a) Assuming that the periodic inventory method is used, calculate the inventory cost at May 31 under each of the following cost flow formulas:
1. FIFO
2. Weighted average (round the weighted average unit cost to the nearest one tenth of one cent)
(b) Which method will yield the higher current ratio or gross profit?
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