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

Hansel Electronics has the following:

Units

Unit Cost

Inventoiy, Jan. 1

5,000

$ 8

Purchase, April 2

15,000

$10

Purchase, Aug. 28

20,000

$12

If Hansel 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.