Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):

• 40 units at $95 per unit
• 71 units at $78 per unit
• 175 units at $56 per unit

Sales for the year totaled 270 units, leaving 16 units on hand at the end of the year. Ending inventory using the average cost method is: (Do not round unit cost calculation. Round your final answer to the nearest whole dollar amount.)

Multiple Choice

• $896.

• $946.

• $1,071.

• $1,520.