A company has an average inventory on hand of $60000 and the days in inventory is 73 days. What is the cost of goods sold?
A) $300000
B) $4380000
C) $600000
D) $2190000

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) can be calculated using the formula: COGS = Average Inventory / Days in Inventory * 365. Plugging in the given values: COGS = $60,000 / 73 * 365 = $300,000.

A Company Has an Average Inventory on Hand of $60000