Zhang Company reported Cost of goods sold of $835,000 and ending Inventory of $41,750.The Days' sales in inventory (rounded to whole days)is:
A)18 days.
B)418 days.
C)10 days.
D)56 days.
E)20 days.

Question

Quizplus · Accepted Answer

Days' sales in inventory = (Ending inventory / Cost of goods sold) * 365 days= (41,750 / 835,000) * 365 days= 18.2 days= 18 days (rounded to whole days)

Zhang Company Reported Cost of Goods Sold of $835,000 and Ending