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 January 10 6,000 Purchases Unit Cost* $ 8 Total Cost January 18 8,000 9 $ 48,000 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. 2. Calculate January's ending inventory and cost of goods sold for the month using LIFO, periodic system. Cost of Goods Available for Sale Cost of Goods Sold - Periodic LIFO Ending Inventory - Periodic LIFO LIFO Number Cost per of units unit Cost of Goods Available for Number of Cost per units sold unit Cost of Goods Sold Number of units in Cost per Ending ending unit Inventory Sale inventory Beginning Inventory 8,000 $ 7.00 $ 56,000 $ 7.00 $ 7.00 Purchases: January 10 January 18 6,000 $ 8.00 48,000 $ 8.00 $ 8.00 8,000 $ 9.00 72,000 $ 9.00 $ 9.00 Total 22,000 $ 176,000