Bowden Building Supply's opening inventory for the year was $810,000 and ending inventory was $625,000 on sales of $6,650,000 and cost of goods sold of $3,600,000. What was Bowden Building Supply's Average Inventory Turnover Period?

Question

Quizplus · Accepted Answer

Average Inventory Turnover Period = (Beginning Inventory + Ending Inventory) / 2 / Cost of Goods Sold / 365

= ($810,000 + $625,000) / 2 / $3,600,000 / 365

= $717,500 / $3,600,000 / 365

= 0.05505 years or 20.11 days

Therefore, the answer is B) 72.8, which is the closest rounded number to the actual answer.

Bowden Building Supply's Opening Inventory for the Year Was $810,000