Question 6

RJ Corporation has provided the following information about one of its inventory items:

Date Transaction Number of Units Cost per Unit

1/1 Beginning Inventory 400 $3,200

6/6 Purchase 800 $3,600

9/10 Purchase 1,200 $4,000

11/15 Purchase 800 $4,200

During the year, RJ sold 3,000 units. What was ending inventory using the average cost flow assumption under a periodic inventory system?

$840,000

$640,000

$880,000

$770,000