Zhang Company reported Cost of goods sold of $835,000,beginning Inventory of $37,200 and ending Inventory of $46,300.The average Inventory amount is:
A)$37,200.
B)$46,300.
C)$83,500.
D)$41,750.
E)$9,100.

Question

Quizplus · Accepted Answer

The formula for average inventory is:

(Average Inventory = (Beginning Inventory + Ending Inventory) / 2)

Plugging in the values given:

(Average Inventory = ($37,200 + $46,300) / 2) = $41,750

Therefore, the average inventory amount is $41,750, which is answer choice D.

Zhang Company Reported Cost of Goods Sold of $835,000,beginning Inventory