P6-1B. Computing FIFO and journalizing inventory transactions (Learning Objectives 1 & 2) 15-20 min. Star Equipment Inc. sells hand-held engine analyzers to automotive service shops. Star Equipment Inc. started April with an inventory of 75 units that cost a total of $10,500. During the month, Star Equipment Inc. purchased and sold merchandise on account as follows: 13 Apr 6 Purchased 125 units @ $144 Sold 110 units @ $295 19 Purchased 160 units @ $154 25 Sold 120 units @ $295 29 Sold 105 units @ $295 Star Equipment Inc. uses the FIFO method. Cash payments on account totalled $31,600. Operating expenses for the month were $17,400, of which two-thirds were paid in cash and the rest accrued as Accounts Payable.