Penn Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1:

Units 2,300 Unit Cost $6.50 Inventory, December 31, prior year For the current year: Purchase, March 21 Purchase, August1 5,300 3,300 7.50 4.00 Inventory, December 31, current year 4,900