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: 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 $188,500 B $195,500 C $166,000 D $106,000

Altira Corporation provides the following information related to its inventory during the month of August 2024: August 1 Inventory on hand—2,300 units; cost $6.40 each. August 8 Purchased 11,500 units for $5.80 each. August 14 Sold 9,200 units for $12.30 each. August 18 Purchased 6,900 units for $5.00 each. August 25 Sold 8,200 units for $11.30 each. August 28 Purchased 4,300 units for $5.80 each. August 31 Inventory on hand—7,600 units. 1. Using calculations based on a perpetual inventory system, determine the inventory balance Altira would report in its August 31, 2024, balance sheet and the cost of goods sold it would report in its August 2024 income statement using the FIFO method.

Fisher Corporation uses the perpetual FIFO inventory method and has the following information regarding its inventory: Date Inventory Events Amount June 1 Beginning balance 60 units at $6 $360 June 3 Purchased 510 units at $10.00 5,100 June 25 Purchased 370 units at $12.00 4,440 If the company sold 350 units of inventory for $12 each what would be the effect of the sale? Record the effect on the following accounts: Assets Liabilities Stockholders' Equity Revenues and Expenses (Income Statement) Net Income Cash - Decrease $4200; Inventory - Decrease $3500 Cash - Decrease $4200; Inventory - Increase $4200 Cash - Decrease $4200; Inventory - No Change Cash - Increase $4200; Inventory - Decrease $3260 Cash - Increase $4200; Inventory - Increase $3500 Cash - Increase $4200; Inventory - No Change Cash - No Change; Inventory - Decrease $3260 Cash - No Change; Inventory - Increase $3260 Cash - No Change; Inventory - No Change

During the year, Wright Company sells 495 remote-control airplanes for $110 each. The company has the following inventory purchase transactions for the year. Number of Unit Date January 1 May 5 Transaction Units Cost Total Cost Beginning inventory 60 $69 $4,140 Purchase 265 72 19,080 November 3 Purchase 215 77 16,555 540 $39,775 Calculate ending inventory and cost of goods sold for the year, assuming the company uses LIFO. Cost of Goods Available for Sale Cost of Goods Sold LIFO Number Cost per of units unit Beginning Inventory 60 $ 69 $ Cost of Goods Available for Sale 4,140 Number of units Cost per Cost of Goods unit Number Sold of units Ending Inventory Cost per unit Ending Inventory $ 0 Purchases: May 5 265 $ 72 19,080 0 November 3 215 $ 77 16,555 0 Total 540 $ 39,775 $ 0 0 $ 0