A company values its inventory of engines using the FIFO (first in,first out) 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: 20x5 1 July Purchased 500 engines at $220 each 1 November Sold 400 engines for $160,000 20x6 1 February Purchased 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 20x6 ?
A company values its inventory of engines using the FIFO (first in,first out) 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: 20x5 1 July Purchased 500 engines at $220 each 1 November Sold 400 engines for $160,000 20x6 1 February Purchased 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 20x6 ?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company values its inventory of engines using the FIFO (first in,first out) 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:
20x5
1 July Purchased 500 engines at $220 each
1 November Sold 400 engines for $160,000
20x6
1 February Purchased 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 20x6 ?
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