Required information

Skip to question

[The following information applies to the questions displayed below.]

A company began January with 7,000 units of its principal product. The cost of each unit is $6. Inventory transactions for the month of January are as follows:

Date of Purchase	Purchases
	Units	Unit Cost*	Total Cost
January 10	6,000	$ 7	$ 42,000
January 18	7,000	8	56,000
Totals	13,000		$ 98,000

* 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.

Required:

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