Question

Zhang company reported cost of goods sold of $842,000, beginning inventory of $38,600 and ending inventory of $47,000. the average inventory amount is:

Answer 1

Given: 
Beginning inventory = $38,600 
Ending inventory = $47,000  
To find: average inventory amount  
Solution:  
Average inventory = (Beginning inventory + Ending inventory) / 2  
($38,600+$47,000) / 2 = $42,800  
Average inventory amount = $42,800