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) $83,500.
B) $9,100.
C) $41,750.
D) $37,200.
E) $46,300.

Question

Quizplus · Accepted Answer

To find the average Inventory amount, we need to use the formula:

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

Plugging in the given values:

Average Inventory = ($37,200 + $46,300) / 2 
Average Inventory = $83,500 / 2 
Average Inventory = $41,750

Therefore, the correct answer is C.

Zhang Company Reported Cost of Goods Sold of $835,000, Beginning