Response to the following problem:
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
Amy is a sole trader and had assets of $569,400 and liabilities of $412,840 on 1 January 20X8.
PLEASE SHOW CALCULATIONS ON HOW YOU ARRIVED AT YOUR ANSWER.