A company began January with 7,000 units of its principal product. The cost of each unit is $6. Inventory transactions for the month of January are as follows:

Date of Purchase	Purchases
	Units	Unit Cost*	Total Cost
January 10	6,000	$ 7	$ 42,000
January 18	7,000	8	56,000
Totals	13,000		$ 98,000

* Includes purchase price and cost of freight.

Sales
Date of Sale	Units
January 5	3,000
January 12	3,000
January 20	4,000
Total	10,000

10,000 units were on hand at the end of the month.

3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system.

Perpetual FIFO:	Cost of Goods Available for Sale			Cost of Goods Sold - January 5			Cost of Goods Sold - January 12			Cost of Goods Sold - January 20			Inventory Balance
	Number of units	Unit Cost	Cost of Goods Available for Sale	Number of units sold	Cost per unit	Cost of Goods Sold	Number of units sold	Cost per unit	Cost of Goods Sold	Number of units sold	Cost per unit	Cost of Goods Sold	Number of units in ending inventory	Cost per unit	Ending Inventory
Beginning Inventory	7,000	$6.00	$42,000	3,000	$6.00	$18,000	18,000	$6.00	$108,000		$6.00	$0		$6.00	$0
Purchases:
January 10	6,000	7.00	42,000		7.00	0		7.00	0		7.00	0		7.00	0
January 18	7,000	8.00	56,000		8.00	0		8.00	0		8.00	0		8.00	0
Total	20,000		$140,000	3,000		$18,000	18,000		$108,000	0		$0	0		$0