Your firm has sales of $628,000 and cost of goods sold of $452,000.At the beginning of the year,your inventory was $31,000.At the end of the year,the inventory balance was $33,000.What is the inventory turnover rate?

Question

Quizplus · Accepted Answer

Inventory turnover rate= cost of goods sold/average inventory

Average inventory= (beginning inventory + ending inventory)/2

Average inventory= ($31,000 + $33,000)/2 = $32,000

Inventory turnover rate= $452,000/$32,000= 14.13 times.

Therefore, the best choice is C.

Your Firm Has Sales of $628,000 and Cost of Goods