Acme Corp averages $15 million worth of inventory in all of its worldwide locations.The enterprise operates 51 weeks a year with each week averaging $3 million in sales (at cost).Determine the inventory turnover.

Question

Quizplus · Accepted Answer

Inventory Turnover = Cost of goods sold / Average inventory
Cost of goods sold = 51 weeks x $3 million/week = $153 million
Average inventory = $15 million
Inventory Turnover = $153 million / $15 million = 10.2 turns

Acme Corp Averages $15 Million Worth of Inventory in All