Asked by Alejandro Otón García on Apr 24, 2024
A merchant had a beginning inventory of $30,000, purchases of $150,000, and an ending inventory of $40,000. Compute the average inventory.
Average Inventory
The mean value of inventory over a certain period of time, calculated to help businesses understand inventory levels and cost of goods sold.
Ending Inventory
This is the total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.
Beginning Inventory
The quantity of goods in stock at the start of a financial period.
- Ascertain the median inventory amount by analyzing the initial and terminal inventory data.
Learning Objectives
- Ascertain the median inventory amount by analyzing the initial and terminal inventory data.