If inventory is taken only at the end of each accounting period, the average inventory for the period can be calculated by adding the beginning and the ending inventories and dividing their sum by two.

Question

Quizplus · Accepted Answer

The average inventory is typically calculated by taking the sum of the beginning and ending inventories for a period and dividing by two, assuming inventory is only measured at these two points.

If Inventory Is Taken Only at the End of Each