Your company sells $469,300 of goods during the year that have a cost of $398,600.Inventory was $29,783 at the beginning of the year and $34,038 at the end of the year.
-Use the information above to answer the following question.What is the inventory turnover ratio?
A) 12.5 times
B) 13.4 times
C) 14.7 times
D) 2.2 times

Question

Quizplus · Accepted Answer

Inventory turnover ratio = (Cost of goods sold) / (Average inventory)Average inventory = (Beginning inventory + Ending inventory) / 2= ($29,783 + $34,038) / 2= $31,910.5Inventory turnover ratio = $398,600 / $31,910.5= 12.5 times

Your Company Sells $469,300 of Goods During the Year That