Required information [The following information applies to the questions displayed below.] Ferris Company began January with 8,000 units of its principal product. The cost of each unit is $6. Merchandise transactions for the month of January are as follows: Purchases Date of Purchase Units Jan. 10 6,000 Unit Cost* $ 7 Jan. 18 Totals 8,000 8 14,000 Total Cost $ 42,000 64,000 106,000 * Includes purchase price and cost of freight. Sales Date of Sale Units Jan. 5 4,000 Jan. 12 2,000 Jan. 20 4,000 Total 10,000 12,000 units were on hand at the end of the month.