Find the average inventory.
-
A)$85,611.00
B)$256,833.00
C)$64,208.25
D)$86,001.00

Question

Find the average inventory.
-
A)$85,611.00 
B)$256,833.00 
C)$64,208.25 
D)$86,001.00

Quizplus · Accepted Answer

To find the average inventory, we need to add up the beginning inventory ($80,000), the purchases ($260,000), and the ending inventory ($50,000), and then divide by 2 (since we're finding the average between the beginning and ending inventory).

($80,000 + $260,000 + $50,000) / 2 = $195,000 / 2 = $64,208.25

Therefore, the average inventory is $64,208.25. To find the average inventory, we need to add the beginning inventory ($30,000) and ending inventory ($98,000) and divide by 2.

($30,000 + $98,000) ÷ 2 = $64,000

Therefore, the best choice is C, which is closest to $64,000.

Find the Average Inventory