If beginning and ending inventories are $12,000 and $29,000, respectively, and cost of goods sold is $480,000, what is the inventory turnover ratio? (Round your answer two decimal places.)
A) 23.41
B) 11.71
C) 40.00
D) 16.55

Question

Quizplus · Accepted Answer

Inventory turnover ratio = Cost of goods sold / (Beginning inventory + Ending inventory) / 2= 480,000 / (12,000 + 29,000) / 2= 480,000 / 20,500= 23.41

If Beginning and Ending Inventories Are $12,000 and $29,000, Respectively