Beginning inventory is $42 000 and Ending inventory is $58 000. Cost of sales is $600 000. How much is the inventory turnover?
A)10.3
B)1.2
C)12.0
D)14.3

Name: Beginning inventory is $42 000 and Ending inventory is $58 000. Cost of sales is $600 000. How much is the inventory turnover? A)10.3 B)1.2 C)12.0 D)14.3
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Question

Quizplus · Accepted Answer

Inventory turnover is calculated as Cost of Sales divided by Average Inventory. Average Inventory = ($42,000 + $58,000) / 2 = $50,000. Inventory Turnover = $600,000 / $50,000 = 12.0.

Beginning Inventory Is $42 000 and Ending Inventory Is $58