Ferris Company began 2016 with 8,000 units of its principal product. The cost of each unit is $7. Merchandise transactions for the month of January 2016 are as follows:

Purchases Date of Purchase Units Unit Cost* Total Cost 6,000 8 48,000 Jan. 10 8,000 72,000 Jan. 18 Totals 14,000 $120,000 *Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 4.000 2,000 Jan. 12 Jan. 20 5.000 Total 11,000 11,000 units were on hand at the end of the month