Cost of goods sold for Abe Distributors was $538,330 for the year. If the beginning inventory at cost was $112,700 and the ending inventory at cost was $301,400, find the inventory turnover at cost. (Round your answer to the nearest tenth)

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Quizplus · Accepted Answer

Inventory turnover at cost is calculated as Cost of Goods Sold divided by Average Inventory. Average Inventory = (Beginning Inventory + Ending Inventory) / 2 = ($112,700 + $301,400) / 2 = $207,050. Inventory Turnover = $538,330 / $207,050 ≈ 2.6 times.

Cost of Goods Sold for Abe Distributors Was $538,330 for the Year