37. Inventory records for MOM Company revealed the following:

Date	Transaction	Number of Units	Unit Cost
Mar. 1	Beginning inventory	200	$66.00
Mar. 6	Purchase	1,000	$66.50
Mar. 16	Purchase	1,000	$66.80
Mar. 23	Purchase	1,000	$66.90

MOM sold 3,190 units of inventory during the month. Ending inventory assuming FIFO would be $______________

38. Inventory records for STC Company revealed the following:

Date	Transaction	Number of Units	Unit Cost
Mar. 1	Beginning inventory	100	$25.00
Mar. 3	Purchase	500	$25.50
Mar. 23	Purchase	400	$26.00

STC sold 980 units of inventory during the month. Ending inventory assuming Weighted Average would be $___________

Use the following to answer questions 39 40

MATCH For each of the following independent situations, fill in the blanks to indicate the effect of the error on each of the various financial statement items. Assume that each of the companies uses a periodic inventory system. Indicate:

(A) an understatement

(B) an overstatement or

(C) no effect, correct

		Balance Sheet		Income Statement
	Error	Ending Inventory	Retained Earnings	Cost of Goods Sold	Net Income
39.	Understated EI in year 1, affect on items in year 1.	a.	b.	c.	d.
40.	Understated EI in year 1, affect on items in year 2.	a.	b.	c.	d.