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

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

Quizplus · Accepted Answer

Calculation: Inventory turnover ratio = 365/26.4 = 13.82576 Cost of goods sold: $40,000 × 13.82576 = $553,030.

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