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Reli Corp. sells designer T-shirts and its accounting records showed the following details for the month of July:
(1) Beginning inventory, July 1: 100 units with a unit cost of $150.
(2) Purchase, July 5: 200 units with a unit cost of $125.
(3) Sale, July 10: 150 units were sold at $300 each.
(4) Purchase, July 20: 100 units with a unit cost of $145.
(5) Sale, July 25: 200 units were sold at $330 each.
Problem 1: On July 31, Reli Corp. counted the inventory on hand and determined that the unsold units were from the purchase made on July 20. If Reli Corp. uses specific identification cost method, what is the cost of ending inventory at the end of July?
a. $6,750
b. $7,250
c. $6,250
d. $7,500
e. $7,650
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