Goods available for sale are $113,000; beginning inventory is $35,000; ending inventory is $39,000; and cost of goods sold is $73,000. The days-sales-in-inventory is closest to: (Round any intermediary calculations two decimal places, X.XX, and your final answer to the nearest day.)

Question

Quizplus · Accepted Answer

Days-sales-in-inventory is calculated as:

(days in period) / (cost of goods sold / average inventory)

First, let's calculate the average inventory:

(Beginning inventory + Ending inventory) / 2 = ($35,000 + $39,000) / 2 = $37,000

Next, let's calculate the days in period. Since we don't have information about the specific period, we'll assume it's a year (365 days):

365

Finally, we can plug these values into the formula:

(days in period) / (cost of goods sold / average inventory) = 365 / ($73,000 / $37,000) ≈ 185 days

Therefore, the closest option is B) 185.

Goods Available for Sale Are $113,000; Beginning Inventory Is $35,000;