The company reported the following information for the month:
_____________________________________________________________Cost.............Retail
Inventory, January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$40,000........$60,000
Purchases in January. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .40,000..........70,000
Sales for the month totaled $94,000. Compute the estimated cost of inventory on hand at the end of the month using the average cost assumption.