Asked by
Lucero Crusoe
on Nov 18, 2024
Verified
Based on the following information, what is (1) inventory turnover; (2) average daily cost of goods sold using a 365 day year; and (3) number of days' sales in inventory. Cost of goods sold $195,640
Inventory:
Beginning of year 20,500
End of year 18,628
A) (1) 9.9 times (2) $543.44
(3) 36.3 days
B) (1) 10.5 times (2) $536
(3) 34.8 day
C) (1) 9.5 times (2) $543.44
(3) 37.7 days
D) (1) 10 times (2) $536
(3) 36.5 days
Average Daily Cost
The average cost incurred by a business or an operation calculated on a daily basis.
Sales In Inventory
This term seems incorrect or incomplete. The correct term is likely "Inventory," which refers to the goods and materials a business holds for the purpose of resale.
- Determine the inventory turnover ratio and assess its relevance.
Verified Answer
HM
Learning Objectives
- Determine the inventory turnover ratio and assess its relevance.