Saxon Corporation's beginning inventory was $30,000.The cost of goods sold was $350,000 for the year,with an ending inventory of $40,000.Inventory turnover for the year is:

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Quizplus · Accepted Answer

Inventory turnover is calculated as Cost of Goods Sold divided by Average Inventory. Average Inventory = (Beginning Inventory + Ending Inventory) / 2 = ($30,000 + $40,000) / 2 = $35,000. Inventory Turnover = $350,000 / $35,000 = 10 times.

Saxon Corporation's Beginning Inventory Was $30,000