Consider the following inventory data: What is the average days in inventory for the year?
$$\begin{array} { | l | r | }
\hline \text { Beginning inventory } & \$ 150,000 \
\hline \text { Ending inventory } & 100,000 \
\text { Purchases } & 310,000 \
\hline
\end{array}$$

Question

Consider the following inventory data: What is the average days in inventory for the year?
$$\begin{array} { | l | r | } 
\hline \text { Beginning inventory } & \$ 150,000 \
\hline \text { Ending inventory } & 100,000 \
\text { Purchases } & 310,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The average inventory is $(150,000 + 100,000) / 2 = 125,000$. The cost of goods sold (COGS) is $150,000 + 310,000 - 100,000 = 360,000$. Days in inventory is $(125,000 / 360,000) \times 365 = 126.7$ days.

Consider the Following Inventory Data: What Is the Average Days