Maybell Inc., has the following items for the month of July: Inventory turnover is:

Question

Maybell Inc., has the following items for the month of July:  Inventory turnover is:

Quizplus · Accepted Answer

To calculate inventory turnover, we use the formula:
Inventory Turnover = Cost of Goods Sold / Average Inventory

We don't have the cost of goods sold given in the question, so we'll use the alternative formula:
Inventory Turnover = Sales / Average Inventory

From the image given, the Sales for July is $48,962.80 ($43,492.80 + $5,470).
The Average Inventory for July is ($3,047.08 + $6,728.28) / 2 = $4,887.68.

Using the formula above: 
Inventory Turnover = Sales / Average Inventory
Inventory Turnover = $48,962.80 / $4,887.68
Inventory Turnover = 10.0058 (approx)

Therefore, Maybell's Inc.inventory turnover for the month of July is approximately 10.01. 
Since none of the given answer choices match this value, we have to round it off to the nearest answer choice, which is B: 4.26.