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17 June, 05:11

Zhang company reported cost of goods sold of $852,000, beginning inventory of $40,600 and ending inventory of $48,000. the average inventory amount is:

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  1. 17 June, 05:37
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    Given:

    Cost of goods sold = $852,000

    Beginning inventor = $40,600

    Ending inventory = $48,000

    By definition,

    Average inventory = (1/2) * (Beginning inventory + Ending inventory)

    = (1/2) * (40600 + 48000)

    = $44,300

    Answer: $44,300
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