Hefty Company wants to know the effect of different inventory methods on financial statements. The information provided below relates to beginning inventory and purchases for the current year:

January 2

Beginning Inventory

500 units at $3.00 per unit

April 7

Purchased

1,100 units at $3.20 per unit

June 30

Purchased

400 units at $4.00 per unit

December 7

Purchases

1,600 units at $4.40 per unit

Sales during the year were 2,700 units at $5.00. If Hefty used the first-in first-out method, ending inventory would be:

Select one:

a.$2,780.

b.$3,960.

c.$9,700.

d.$10,880.