Ferris Company began January with 7,000 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 4,000 $ 9 $ 36,000

Jan. 18 7,000 10 70,000

Totals 11,000 106,000

* Includes purchase price and cost of freight.

Sales

Date of Sale Units

Jan. 5 3,000

Jan. 12 1,000

Jan. 20 4,000

Total 8,000

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

Required:

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