Required information [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 Units Purchases Unit Cost Total Cost January 10 6,000 $ 7 January 18 7,000 8 $ 42,000 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 201 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. Cost of Goods Available for Sale Cost of Goods Sold - January 5 Cost of Goods Sold - January 12 Perpetual FIFO: Number of units Unit Cost Cost of Goods Available for Sale Number of units Cost per unit Cost of Goods Sold Number of units Cost per unit Cost of Goods Sold sold sold Beginning Inventory 7,000 $ 6.00 $ 42,000 $ 6.00 $ 0 $ 6.00 $ 0 Purchases: January 10 6,000 7.00 42,000 7.00 January 181 7,000 8.00 56,000 8.00 0 0 7.00 8.00 Total 20,000 $ 140,000 0 $ 10 0 0 S 000 Cost of Goods Sold - January 20 Inventory Balance Number of Number of units Cost per unit Cost of Goods Sold units in Cost per ending unit Ending Inventory sold inventory 0 $ 6.00 $ 0 $ 6.00 $ 0 0 7.00 0 7.00 0 0 8.00 8.00 0 $ 0 0 $ 0