With beginning inventory at cost of $9,000, ending inventory at cost of $7,000, net sales of $51,000, and cost of goods sold of $46,000, the inventory turnover at cost to the nearest hundredth is:
A)5.75
B)7.55
C)5.57
D)7.57
E)None of these

Question

Quizplus · Accepted Answer

Inventory turnover is calculated as Cost of Goods Sold divided by Average Inventory. Average Inventory = ($9,000 + $7,000) / 2 = $8,000. Inventory Turnover = $46,000 / $8,000 = 5.75.

With Beginning Inventory at Cost of $9,000, Ending Inventory at Cost