WellSurf Ltd sells one type of surfboard and has the following inventory transactions for the half year ending 31 December 2020:

	Units	Price/unit	Total
Opening inventory at 1 July 2020	500	$250	$125,000
Purchases on 1 August 2020	1000	$260	$260,000
Purchases on 15 October 2020	500	$290	$145,000
Purchases on 20 December 2020	900	$300	$270,000
Total	2900		$800,000

During the year, WellSurf Ltd sells 2500 surfboards. The company uses the periodic system to manage inventory.

What is the ending inventory at 31 December 2020 using the weighted average method??

a. $100 000.

b. $110 345.

c. $120 000.

d. $296 000.