Fun and Frolic Sporting Goods takes inventory quarterly. Beginning inventory for the year was $187,000. Inventory at the end of the first quarter was $175,000; at the end of the second quarter, $205,000; at the end of the third quarter, $190,500; and at the end of the year, $184,600. Compute the average inventory for Fun and Frolic Sporting Goods.​

Average Inventory

An accounting measure used to estimate the value or quantity of inventory over a period, typically calculated as the sum of the starting and ending inventory divided by two.

Beginning Inventory

The value of a company’s inventory at the start of an accounting period, before any purchases or sales have occurred.

Quarterly

occurring every three months or four times a year, often used to describe the periodic reporting schedule of businesses and investments.