Zhang company reported cost of goods sold of $842,000, beginning inventory of $38,600 and ending inventory of $47,000. the average inventory amount is:

Given:

Beginning inventory = $38,600

Ending inventory = $47,000

To find: average inventory amount

Solution:

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

($38,600+$47,000) / 2 = $42,800

Average inventory amount = $42,800