The average inventory amount with beginning inventory of $39,600 and ending inventory of $47,500 is $43550.
Products that have completed the production process and are ready for sale are referred to as finished goods. Retailers commonly allude to this stock as product. The costs of products that are either ready to be manufactured and sold to customers or are in the process of being manufactured and sold to customers are referred to as inventory.
All of the costs associated with ordering, keeping, and managing a product-based business's inventory or stock levels are included in its inventory costs. Typically, total inventory costs are divided into three categories: costs associated with ordering, transporting, and stock out.
Given,
Cost of goods sold = $847,000
Beginning inventor = $39,600
Ending inventory = $47,500
Average inventory = (1/2)×(Beginning inventory + Ending inventory)
= (1/2)×(39600 + 47500)
= $43550
To learn more about inventory here
https://brainly.com/question/14184995
#SPJ1
