1. The following units of an inventory item were available for sale during the year:

Beginning inventory	7 units at $51
First purchase	17 units at $53
Second purchase	28 units at $54
Third purchase	16 units at $55

The firm uses the periodic inventory system. During the year, 21 units of the item were sold.

The value of ending inventory rounded to the nearest dollar using average cost is (Round average cost per unit to three decimal place.)

a.$1,099

b.$1,150

c.$2,523

d.$1,071

2. The following units of an inventory item were available for sale during the year:

Beginning inventory	10 units at $47
First purchase	16 units at $52
Second purchase	23 units at $57
Third purchase	17 units at $61

The firm uses the periodic inventory system. During the year, 47 units of the item were sold.

The value of ending inventory using LIFO is

a.$1,173

b.$470

c.$938

d.$1,408