ProShopper, a sportswear store, held an average sportswear inventory of $10 million last year and reported an inventory turnover of 5 times per year. What was its cost of goods sold?

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) can be calculated by multiplying the inventory turnover by the average inventory. Here, COGS = 5 times * $10 million = $50 million.

ProShopper, a Sportswear Store, Held an Average Sportswear Inventory of $10