If the average aggregate inventory value is $100,000 and the cost of goods sold is $450,000, which of the following is inventory turnover?
A)19.23
B)4.5
C)0.8654
D)0.2222
E)None of the above

Question

Quizplus · Accepted Answer

Inventory turnover is calculated by dividing cost of goods sold by average aggregate inventory value. 
Inventory turnover = Cost of goods sold / Average aggregate inventory value
= $450,000 / $100,000
= 4.5

If the Average Aggregate Inventory Value Is $100,000 and the Cost