Thiewes Shoes begins each period with 100 pairs of hiking boots in stock. This stock is depleted each period and reordered. If the carrying cost per pair of boots per year is $3, what are the total carrying costs for the hiking boots?

Inventories always start at 100 items and end up at zero, so average inventory is 50 items. At an annual cost of $3 per item, total carrying costs are $150.