Ferris Company began January with 4,000 units of its principal product. The cost of each unit is $8. Merchandise transactions for the month of January are as follows:

	Purchases
Date of Purchase	Units		Unit Cost*			Total Cost
Jan. 10	3,000		$	9			$	27,000
Jan. 18	4,000			10				40,000
Totals	7,000							67,000

* Includes purchase price and cost of freight.

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

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

Problem 8-5 (Algo) Part 5

5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system. (Round average cost per unit to 4 decimal places. Enter sales with a negative sign.)

Perpetual Average	Inventory on hand			Cost of Goods Sold
	# of units	Cost per unit	Inventory Value	# of units sold	Avg.Cost per unit	Cost of Goods Sold
Beginning Inventory	4,000	8.0000	$32,000
Sale - January 5	(2,000)	8.0000	(16,000)	2,000	$8.0000	$16,000
Subtotal Average Cost	2,000	8.0000	16,000
Purchase - January 10	3,000	9.0000	27,000
Subtotal Average Cost	5,000		43,000
Sale - January 12	(1,000)		0	1,000	$0.0000	$0
Subtotal Average Cost	4,000		43,000
Purchase - January 18	4,000	10.0000	40,000
Subtotal Average Cost	8,000		83,000
Sale - January 20	(3,000)		0	3,000	$0.0000	0
Total	5,000		$83,000	6,000		$16,000