The following information was available for Bowyer Company at December 31, 2017: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $800,000; and sales $1,100,000. Bowyer's days in inventory in 2017 was
A)26.4 days.
B)36.5 days.
C)32.0 days.
D)41.0 days.

Question

Quizplus · Accepted Answer

Days in inventory is calculated as (Ending Inventory / Cost of Goods Sold) * 365. For Bowyer Company, it is ($70,000 / $800,000) * 365 = 31.9375, which rounds to 36.5 days.

The Following Information Was Available for Bowyer Company at December