Cinnamon Corp. started business in 2007 and uses the weighted average cost method.

During 2007, it purchased 45,000 units of inventory at €10 each and sold 40,000 units for €20 each. In 2008, it purchased another 50,000 units at €11 each and sold 45,000 units for €22 each. Its 2008 cost of sales (€ thousands) was closest to:

A. €490.

B. €491.

C. €495.

Assume the companies use a periodic inventory system.