A company values its inventory using the AVCO method. It started trading on 1 January 20X7 with no inventory. The following transactions have taken place.

February	Bought	500 items @ $210 each
March	Sold	200 items @ $60,000
August	Bought	300 items @ $216 each
September	Sold	200 items @ $60,000
January 20X8	Sold	200 items @ $60,000

What is the value of the closing inventory at 31 December 20X7, based on period end inventory records?

Group of answer choices

$84,900

$85,200

$85,500

$120,000