- This topic has 1 reply, 2 voices, and was last updated 9 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Opening inventory.. 5000
Purchases 2000
Closing inventory 6000
How is that we calculate average inventory is it 5000+6000÷2 ?If you just want the average inventory the purchases,cost of goods sold and other related figures are irrelevant to the calculation in question.The average inventory is usually calculated as a simple mean average of opening and closing inventory.Of course, the “normal” level of inventory held may be much higher or lower than this calculation indicates.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.