Vann Co. uses the perpetual inventory method. Vann purchased 400 units of inventory that cost $3.00 each. Several weeks later, the company purchased an additional 600 units of inventory that cost $4.00 each. If Vann Co. uses the FIFO cost flow method and sold 850 units of inventory during the period, the amount of cost of goods sold was:
1. $3,000.
2. $2,800.
3. $2,880.
4. $600.