If beginning and ending inventories are $175,000 and $125,000,respectively,and the cost of goods sold is $450,000,what is the inventory turnover ratio?
A)4)50
B)3)00
C)3)60
D)0)28

Question

Quizplus · Accepted Answer

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
Average Inventory = (Beginning Inventory + Ending Inventory) / 2
Average Inventory = ($175,000 + $125,000) / 2 = $150,000
Inventory Turnover Ratio = $450,000 / $150,000 = 3.00

If Beginning and Ending Inventories Are $175,000 and $125,000,respectively,and the Cost