Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):

• 40 units at $109 per unit
• 74 units at $86 per unit
• 171 units at $53 per unit

Sales for the year totaled 271 units, leaving 14 units on hand at the end of the year. Ending inventory using the average cost method is: (Do not round unit cost calculation. Round your final answer to the nearest whole dollar amount.)

Multiple Choice

• $742.

• $972.

• $1,526.

• $792.