A company began January with 4,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows:

Date of Purchase	Purchases
	Units	Unit Cost*	Total Cost
January 10	3,000	$ 8	$ 24,000
January 18	4,000	9	36,000
Totals	7,000		$ 60,000

* Includes purchase price and cost of freight.

Sales
Date of Sale	Units
January 5	2,000
January 12	1,000
January 20	3,000
Total	6,000

5,000 units were on hand at the end of the month.