BL Industries has ending inventory of $300,000,and cost of goods sold for the year just ended was $1,410,000.On average,how long does a unit of inventory sit on the shelf before it is sold?
A)17.16 days
B)21.43 days
C)77.66 days
D)78.29 days
E)83.13 days

Question

Quizplus · Accepted Answer

Inventory turnover = $1,410,000/$300,000 = 4.7 timesDay's sales in inventory = 365/4.7 = 77.66 days

BL Industries Has Ending Inventory of $300,000,and Cost of Goods