Buffalo Company sells one product. Presented below is information for January for Buffalo Company.

Jan. 1		Inventory		104	units at $5 each
4		Sale		79	units at $8 each
11		Purchase		145	units at $6 each
13		Sale		115	units at $9 each
20		Purchase		162	units at $6 each
27		Sale		107	units at $10 each

Buffalo uses the FIFO cost flow assumption. All purchases and sales are on account.

Assume Buffalo uses a perpetual system. Prepare necessary journal entries for January 13 and January 27.

Compute gross profit using the perpetual system.