Sackett Corporation had a beginning inventory of 10,000 units, which were purchased in the prior year as follows:

	Units	Unit Price
September	4,000	$2.00
October	4,000	$2.10
December	2,000	$2.30

In the current year, Sackett purchases an additional 12,000 units (7,000 in June at $2.50 and 5,000 in November at $2.70) and sells 16,000 units. Using the FIFO method, what is Sacketts ending inventory?

A.

$13,000 (4,000 @ $2.10 and 2,000 @ $2.30)

B.

$15,600 (6,000 @ $2.60 average of $2.50 and $2.70)

C.

$16,000 (5,000 @ $2.70 and 1,000 @ $2.50)

D.

$12,200 (4,000 @ $2.00 and 2,000 @ $2.10)