Phil's Hardware sells its inventory in 75 days,on average.Costs of goods sold for the year are $631,800.What is the average value of the firm's inventory?
A)$119,706
B)$129,821
C)$147,132
D)$161,096
E)$182,513

Name: Phil's Hardware sells its inventory in 75 days,on average.Costs of goods sold for the year are $631,800.What is the average value of the firm's inventory? A)$119,706 B)$129,821 C)$147,132 D)$161,096 E)$182,513
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Question

Quizplus · Accepted Answer

Inventory turnover = 365/75 = 4.8667; Inventory = $631,800/4.8667 = $129,821

Phil's Hardware Sells Its Inventory in 75 Days,on Average