Head on Straight, Inc. sells hats to fine retailers across the world. It uses a FIFO perpetual inventory system. Inventory data is presented in the table below.

Determine the operating income for the period, assuming that 1,000 units were sold for $170 each. Operating expenses excluding cost of goods sold totaled $40,000.

$110,000

$16,000

$65,000

$20,000

Date January January 13 January 22 Beginning inventory Purchase Purchase Number of Units 300 400 500 Unit Cost $100 $110 $120 Total Cost $30,000 $44,000 $60,000