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A company began January with 7,000 units of its principal product. The cost of each unit is $7. Inventory transactions for the month of January are as follows:

Date of Purchase	Purchases
Units	Unit Cost*Footnote asterisk	Total Cost
January 10	6,000	$ 8	$ 48,000
January 18	7,000	9	63,000
Totals	13,000		$ 111,000

*Footnote asterisk Includes purchase price and cost of freight.

Sales
Date of Sale	Units
January 5	3,000
January 12	1,000
January 20	4,000
Total	8,000

12,000 units were on hand at the end of the month.

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

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Perpetual FIFO: } & \multicolumn{4}{|c|}{ Cost of Goods Available for Sale } & \multicolumn{3}{|c|}{ Cost of Goods Sold - January 5} & \multicolumn{3}{|c|}{ Cost of Goods Sold - January 12} & \multicolumn{3}{|c|}{ Cost of Goods Sold - January 20} & \multicolumn{3}{|c|}{ Inventory Balance } \\ \hline & \multirow{2}{*}{\begin{tabular}{|r|} \begin{tabular}{c} Number \\ of units \end{tabular} \\ 7,000 \\ \end{tabular}} & \multirow{2}{*}{\begin{tabular}{c} \begin{tabular}{c} Unit \\ Cost \end{tabular} \\ $7.00 \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{|c|} Cost of \\ Goods \\ Available for \\ Sale \end{tabular}} & \multirow{2}{*}{\begin{tabular}{|c|} \begin{tabular}{c} Number \\ of units \\ sold \end{tabular} \\ \\ \end{tabular}} & \begin{tabular}{c} Cost per \\ unit \end{tabular} & \multirow[t]{2}{*}{\begin{tabular}{c} Cost of \\ Goods Sold \end{tabular}} & \multirow{2}{*}{\begin{tabular}{c} \begin{tabular}{c} Number \\ of units \\ sold \end{tabular} \\ \end{tabular}} & \begin{tabular}{c} Cost per \\ unit \end{tabular} & \multirow{2}{*}{\begin{tabular}{|c|} \begin{tabular}{c} Cost of \\ Goods Sold \end{tabular} \\ \\ \end{tabular}} & \multirow{2}{*}{\begin{tabular}{c} \begin{tabular}{c} Number \\ of units \\ sold \end{tabular} \\ \end{tabular}} & \begin{tabular}{c} Cost per \\ unit \end{tabular} & \multirow[t]{2}{*}{\begin{tabular}{c} Cost of \\ Goods Sold \end{tabular}} & \multirow{2}{*}{\begin{tabular}{|c|} \begin{tabular}{c} Number of \\ units in \\ ending \\ inventory \end{tabular} \\ \end{tabular}} & \begin{tabular}{c} Cost per \\ unit \end{tabular} & \multirow[t]{2}{*}{\begin{tabular}{c} Ending \\ Inventory \end{tabular}} \\ \hline Beginning Inventory & & & $ & 49,000 & & 7.00 & & & 7.00 & & & $7.00 & & & 7.00 & \\ \hline \multicolumn{17}{|l|}{ Purchases: } \\ \hline January 10 & 6,000 & 8.00 & & 48,000 & & 8.00 & & & 8.00 & 0 & & 8.00 & & & 8.00 & \\ \hline January 18 & 7,000 & 9.00 & & 63,000 & & 9.00 & & & 9.00 & 0 & & 9.00 & 0 & & 9.00 & \\ \hline Total & 20,000 & & $ & 160,000 & & & & & & & & & & & & \\ \hline \end{tabular}