Question

Zhang Company reported Cost of goods sold of $855,000, beginning Inventory of $41,200 and ending Inventory of $48,300. The average Inventory amount is:

Answer 1

Answer:

the avergae inventory amount is $44,750

Explanation:

The computation of the average inventory would be

= (Opening inventory + beginning inventory) ÷ 2

= ($41,200 + $48,300) ÷ 2

= $89,500 ÷ 2

= $44,750

hence, the avergae inventory amount is $44,750

We simply applied the above formula so that the correct value could come

And, the same is to be considered

The other values would be ignored