The following information was available from the inventory records of Waterway Industries for January:

				Units				Unit Cost			Total Cost
Balance at January 1					8800				$9.80			$86240
	Purchases:
		January 6			5800				10.22			59276
		January 26			8000				10.76			86080
	Sales
		January 7			(7700	)
		January 31			(11000	)
Balance at January 31					3900

Assuming that Waterway maintains perpetual inventory records, what should be the inventory at January 31, using the moving-average inventory method, rounded to the nearest dollar? (Round average cost per unit to 3 decimal places, e.g. 1.485.)

$39965.

$40533.

$40054.

$40655.