Question - The following units of an inventory item were available for sale during the year:
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Beginning inventory
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10 units at $55
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First purchase
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25 units at $60
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Second purchase
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30 units at $65
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Third purchase
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15 units at $70
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The firm uses the periodic inventory system. During the year, 60 units of the item were sold.
The value of ending inventory rounded to nearest dollar using average cost is:
a. $1,353
b. $1,263
c. $1,150
d. $1,375