Redeker Company had the following records: $\begin{array}{lll}&2017&2016\
\text { Ending inventory } & \$ 32,650 & \$ 30,490 \
\text { Cost of qoods sold } & 213,600 & 209,040
\end{array}$ What is Redeker's inventory turnover for 2017? (rounded)
A)6.8 times
B)7.0 times
C)6.6 times
D)6.5 times

Question

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold / Average inventoryAverage inventory = (Beginning inventory + Ending inventory) / 2Average inventory = ($30,490 + $32,650) / 2 = $31,570Inventory turnover = $213,600 / $31,570 = 6.8 times