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A company values its inventory using the first in, first out (FIFO) method. At 1 May 2002 the company had 700
engines in inventory, valued at $190 each.
During the year ended 30 April 2003 the following transactions took place:
  2002
1 July                         Purchased                         500 engines                                         at $220 each
1 November               Sold                                   400 engines                                         for $160,000
  2003
1 February                urchased                          300 engines                                         at $230 each
15 April                      Sold                                   250 engines                                          for $125,000
What is the value of the company’s closing inventory of engines at 30 April 2003?
A $188,500
B $195,500
C $166,000
D None of these figures.

 

9 A 300 @ 230 + 500 @ 220 + 50 @ 190 = 188,500

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