The following information was available for Pete Company at December 31, 2022: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $984,000; and sales $1,350,000.Pete's inventory turnover in 2022 was

Question

Quizplus · Accepted Answer

Inventory turnover is calculated as Cost of Goods Sold divided by Average Inventory. Average Inventory = ($90,000 + $70,000) / 2 = $80,000. Inventory Turnover = $984,000 / $80,000 = 12.3 times.

The Following Information Was Available for Pete Company at December