Question Nestle is a wholesale distribution business that sells its Milo drink product to supermarkets. The following relates to the business's activities during January 2019: January Opening inventory 40,000 tins cost $3 each tin Purchases 4,000 tins purchase price $3.50 each tin 23 Purchases 30,000 tins purchase price $3.60 each tin 31 Closing inventory (as per physical stocktake) 33,000 tins. Additional information i. The most recent selling price of the milo drink is $6.50 per tin ii. Two thousand tins of the closing inventory have passed their use-by date and cannot be sold for human consumption. However, they can be sold as pig feed for $1.80 per tin. Freight from the supplier to Nestle costs $1.20 per tin. Freight from Nestle to supermarkets costs $1.40 per tin and would also apply to tins sold for pig feed. Nestle pays both sets of freight costs. 111. iv. Nestle adopts the FIFO cost flow method for its MILO drink product line Required (a) Nestle is considering introducing a new line of inventory, a Barcelona FC Football Jersey. Explain why the weighted average cost flow method is appropriate for this line of inventory (b) Calculate the value of closing inventory as provided for in AASB 102 Inventories, applying the FIFO (first-in-first-out) cost flow method. Justify all aspects of your calculation (c) Prepare any adjustment general journal entry for inventory at 31 January 2019. (d) Prepare the extract to the Balance Sheet for valuation of closing inventory as at 31 January 2019