Best Diamond Co. uses a perpetual inventory system and the specific identification cost formula. Below is the companys beginning inventory, purchases and sales transactions for the month of December.

	Quantity	Unit Cost	Unit Cost
Beginning Inventory (Dec 1)
Diamond # 234	1	$1,200	$1,200
Diamond # 435	2	2,400	4800
Diamond # 654	1	3,500	3,500
Jan 6 Purchase Diamond # 765	1	4500	4500

Jan 4 Sold Diamond # 654 for $4,000 Jan 15 Sold one Diamond # 435 for $3,000 and Diamond # 234 for $2,000 Determine the value of the Inventory ending at Jan 31

$7,100

$4,500

$6,900

$1,200