Davidson Electronics has the following:

Units Unit Cost

Inventory, Jan. 1 5,000 $ 8

Purchase, April 2 15,000 10

Purchase, Aug. 28 20,000 12

If Davidson has 7,000 units on hand at December 31, how much is the cost of ending inventory under the average-cost method in a periodic inventory system?

$84,000

$56,000

$70,000

$75,250