Classic Vehicles had a beginning inventory of $156,700 and an ending inventory of $98,500. If the cost of goods sold was $152,100, calculate the inventory turnover. (Round to the nearest tenth)
A) 1.3 times
B) 1.1 times
C) 1.2 times
D) 1.7 times

Question

Quizplus · Accepted Answer

Inventory turnover = (Cost of goods sold) / (Average inventory)Average inventory = (Beginning inventory + Ending inventory) / 2= ($156,700 + $98,500) / 2= $127,600Inventory turnover = $152,100 / $127,600= 1.2 times

Classic Vehicles Had a Beginning Inventory of $156,700 and an Ending