Thomas Inc.provided the following particulars for year 2015:
-Calculate the average merchandise inventory held by Thomas Inc.during the year.

Question

Thomas Inc.provided the following particulars for year 2015:  
-Calculate the average merchandise inventory held by Thomas Inc.during the year.

Quizplus · Accepted Answer

Average merchandise inventory can be calculated by adding the beginning inventory and ending inventory, and then dividing the sum by 2. From the given particulars, the beginning inventory was $400,000 and the ending inventory was $575,000. Therefore, the average inventory for the year was ($400,000 + $575,000) / 2 = $487,500.