Freeman Company uses the perpetual inventory system and applied FIFO inventory costing method. At the end of the annual accounting period, December 31, 2014, the accounting records in inventory showed: Units 300 500 Unit Cost $20 21 Transactions Beginning inventory, Jan. 1, 2014 Purchase, Feb. 1 Purchase, May 15 Sale, March 15 (sold at $20 each) Sale, July 31 (sold at $25 each) 400 22 (400) (500) Required: Assuming that the net realizable value of the inventory is $21 per unit, calculate the following: | 1. Cost of goods available for sale (2 points) 2. Ending inventory to be reported on the balance sheet. (4 points) 3. Cost of goods sold to be reported on the income statement (4 points)