1. In its first month of operations, Kingbird, Inc. made three purchases of merchandise in the following sequence: (1) 260 units at $4, (2) 360 units at $6, and (3) 460 units at $7. Assuming there are 160 units on hand at the end of the period.

Calculate average unit cost. (Round answer to 3 decimal places, e.g. 5.125.)

2. Compute the cost of the ending inventory under the average-cost method, assuming there are 160 units on hand. (Round answer to 0 decimal places, e.g. 125.)

The cost of the ending inventory