Answer:
The correct answer is: A. $16,048
Explanation:
To find the average inventory for the year, we need to add up the inventories for each month and then divide by the number of months.
Total inventory for the year = Inventory on January 1 + Inventory on July 31 + Inventory on December 31
Total inventory for the year = $15,236 + $16,498 + $17,232
Total inventory for the year = $48,966
Now, divide the total inventory by the number of months in a year (12) to find the average inventory:
Average inventory = Total inventory for the year / Number of months
Average inventory = $48,966 / 12
Average inventory ≈ $4,080.50
So, the average inventory for the year is approximately $4,080.50.
Among the given options, the closest value to the calculated average inventory is:
$4,080.50 ≈ $4,048