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 days in inventory in 2022 was

Question

Quizplus · Accepted Answer

To calculate Pete's days in inventory for 2022, we use the formula: Days in Inventory = (Average Inventory / Cost of Goods Sold) * 365. Average Inventory = (Beginning Inventory + Ending Inventory) / 2 = ($90,000 + $70,000) / 2 = $80,000. Thus, Days in Inventory = ($80,000 / $984,000) * 365 ≈ 29.7 days.

The Following Information Was Available for Pete Company at December