Amben Ltd. values its inventory using the AVCO method. At 1 May 2019 the company had 700 engines in inventory, valued at $190 each.

During the year ended 30th April 2020 the following transactions took place:

2019

1 July Purchased 500 engines at $220 each

1 November Sold 400 engines for $360 each

2020

1 February Purchased 300 engines at $230 each

15 April Sold 250 engines for $450 each.

1. what is the value of the company's closing inventory of engines as 30 April.

(A) $187,500

(B) $178,500

(C) $172,125

(D) $127,125

2. What is the value of the company's cost of sales?

(A) $52,500

(B) $81,000

(C) $135,300

(D) $133,500

3. What is the value of the company's sales

(A) $256,500

(B) $256,500

(C) $112,500

(D) $144,000

4. Compute the company's profit or loss for the year ending 30th April 2020.

(A) $133,500

(B) $123,500

(C) $123,000

(D) $256,500