Accounting · Inventory Valuation
A company values its inventory using the FIFO method. At 1 May 20X5 the company had 700 engines in inventory, valued at $190 each. During the year ended 30 April 20X6 the following transactions took place: - 1 July 20X5: Purchased 500 engines at $220 each - 1 November 20X5: Sold 400 engines for $160,000 - 1 February 20X6: Purchased 300 engines at $230 each - 15 April 20X6: Sold 250 engines for $125,000 What is the value of the company's closing inventory of engines at 30 April 20X6?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$106,000
- 2$166,000
- 3$195,500
- 4$188,500✓
Correct answer
$188,500
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