Question

Zhang company reported cost of goods sold of $837,000, beginning inventory of $37,600 and ending inventory of $46,500. the average inventory amount is:

Answer 1

The average inventory amount is: $51,050

What is  average inventory amount ?

The average inventory value or quantity across two or more accounting periods is the inventory you have on hand. The inventory's average worth over a specific period of time is what it represents. It's possible that value and the median figure calculated from the same data are not equal.

According to the given information:

Cost of goods sold = $837,000

Beginning inventor = $37,600

Ending inventory = $46,500

By definition,

Average inventory = (1/2)*(Beginning inventory + Ending inventory)

                               = (1/2)*(37600 + 64500)

                               = 1,02,100/2

                                = 51,050

the average inventory amount is: $51,050

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