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 $98 per unit
• 75 units at $77 per unit
• 172 units at $56 per unit

Sales for the year totaled 275 units, leaving 12 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

• $808.

• $722.

• $1,176.

• $672.