Required information Problem 8-5 (Algo) Various inventory costing methods [LO8-1, 8-4] [The following information applies to the questions displayed below.] A company began January with 8,000 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 Units Purchases Unit Cost* Total Cost January 10 6,000 $ 8 $ 48,000 January 18 8,000 9 72,000 Totals 14,000 $ 120,000 *Includes purchase price and cost of freight. Sales Date of Sale Units January 5 4,000 January 12 2,000 January 20 5,000 Total 11,000 11,000 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 Cost of Goods Sold - January 20 Inve Perpetual FIFO: Number of units Unit Cost Cost of Goods Available for Sale Number of units. Cost per unit Cost of Goods Sold sold Number of units sold Cost per unit Cost of Goods Sold Number of units Cost per unit Cost of Goods Sold Number of units in C sold ending Inventory Beginning Inventory 8,000 $ 7.00 $ 56,000 $ 7.00 $ 7.00 $ 7.00 Purchases: January 10 6,000 8.00 48,000 8.00 January 18 8,000 9.00 72,000 9.00 Total 22,000 $ 176,000 8.00 0 8.00 9.00 0 9.00 0 Cost of Goods Sold - January 20 Inventory Balance Number of Number of units Cost per Cost of units in Cost per unit Goods Sold ending unit Ending Inventory sold inventory $ 7.00 $ 7.00 8.00 8.00 9.00 0 9.00