Phil's Carvings sells its inventory in 93 days, on average.Costs of goods sold for the year are $187,200.What is the average value of the firm's inventory? Assume a 365-day year.
A)$20,129
B)$47,698
C)$57,132
D)$61,096
E)$32,513

Question

Quizplus · Accepted Answer

The average inventory can be calculated using the formula: (Inventory Turnover Days / 365) * Cost of Goods Sold. Here, (93 / 365) * $187,200 = $47,698.

Phil's Carvings Sells Its Inventory in 93 Days, on Average