Communications reported the following figures in its annual financial​ statements:

Communications reported the following figures in its annual financial​ statements:

Cost of Goods Sold	$18,800
Beginning Merchandise Inventory	540
Ending Merchandise Inventory	480

Explanation

Average merchandise inventory ​= ​(Beginning merchandise inventory ​+ Ending merchandise​ inventory) / 2 ​=  ($540540 ​+ $480480 ) ​/ 2 ​= $510.00510.00

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