Weller,Inc.provided the following particulars for 2017: $$\begin{array} { | l | r | }
\hline \text { Cost of Goods Sold (Cost of sales) } & \$ 1,000,000 \
\hline \text { Beginning Merchandise Inventory } & 335,000 \
\hline \text { Ending Merchandise Inventory } & 600,000 \
\hline
\end{array}$$ Calculate the average number of days that inventory was held by Weller,Inc.during 2017.(Assume 365 days in a year.Round your intermediate calculations and final answer to two decimal places. )

Question

Weller,Inc.provided the following particulars for 2017: $$\begin{array} { | l | r | } 
\hline \text { Cost of Goods Sold (Cost of sales) } & \$ 1,000,000 \
\hline \text { Beginning Merchandise Inventory } & 335,000 \
\hline \text { Ending Merchandise Inventory } & 600,000 \
\hline
\end{array}$$ Calculate the average number of days that inventory was held by Weller,Inc.during 2017.(Assume 365 days in a year.Round your intermediate calculations and final answer to two decimal places. )

Quizplus · Accepted Answer

The average inventory is $(335,000 + 600,000) / 2 = 467,500$. The inventory turnover ratio is $1,000,000 / 467,500 = 2.14$. The average number of days inventory was held is $365 / 2.14 = 170.56$ days.

Weller,Inc Calculate the Average Number of Days That Inventory Was Held