The average age of the inventory for a firm is 10 days old.If the current dollar amount of inventory is $1,000,what is a good estimate for the cost of goods sold over the last year?

Name: The average age of the inventory for a firm is 10 days old.If the current dollar amount of inventory is $1,000,what is a good estimate for the cost of goods sold over the last year?
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Question

Quizplus · Accepted Answer

10 = 365/Inv turn,Inventory turn = 36.5
36.5 = COGS/ INV = COGS / $1000
COGS = $36500

The Average Age of the Inventory for a Firm Is