If Davidson has 7,000 units on hand at December 31, the cost of ending inventory under the…

Davidson Electronics has the following:

Units

Unit Cost

Inventory, Jan. 1

5,000

$ 8

Purchase, April 2

15,000

$10

Purchase,Aug. 28

20,000

$12

If Davidson has 7,000 units on hand at December 31, the cost of ending inventory under the average-cost method is:

a. $84,000.

b. $70,000.

c. $56,000.

d. $75,250.