A company has average inventory on hand of $40,000 and its average days in inventory is 26.4 days.What is the cost of goods sold?
A)$1,056,000
B)$553,030
C)$486,667
D)$480,000

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) can be calculated using the formula: COGS = (Average Inventory / Average Days in Inventory) * 365. Plugging in the values: COGS = ($40,000 / 26.4) * 365 = $553,030.

A Company Has Average Inventory on Hand of $40,000 and Its