The Novelty Shop had sales of $510,000 over the last year. The beginning inventory at retail was $209,000 and the ending inventory at retail was $179,000.

The average inventory at retail is $194,000.

Question

The Novelty Shop had sales of $510,000 over the last year. The beginning inventory at retail was $209,000 and the ending inventory at retail was ​$179,000.
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The average inventory at retail is $194,000.

Quizplus · Accepted Answer

The average inventory at retail is calculated as (Beginning Inventory + Ending Inventory) / 2 = ($209,000 + $179,000) / 2 = $388,000 / 2 = $194,000.

The Novelty Shop Had Sales of $510,000 Over the Last