The following information was available for Camara Company at December 31, 2022: beginning inventory $80,000; ending inventory $120,000; cost of goods sold $630,000; and sales $900,000.Camara's days in inventory in 2022 was
A)40.6 days.
B)46.2 days.
C)57.9 days.
D)68.9 days.

Question

Quizplus · Accepted Answer

Days in inventory is calculated as (Ending Inventory / Cost of Goods Sold) * 365. The average inventory is ($80,000 + $120,000) / 2 = $100,000. Days in inventory = ($100,000 / $630,000) * 365 = 57.9 days.

The Following Information Was Available for Camara Company at December