Kopas Corporation has provided the following data: The inventory turnover for this year is closest to:
A)3.09
B)0.98
C)1.03
D)3.05

Name: Kopas Corporation has provided the following data: The inventory turnover for this year is closest to: A)3.09 B)0.98 C)1.03 D)3.05
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Question

Kopas Corporation has provided the following data:  The inventory turnover for this year is closest to:
A)3.09 
B)0.98 
C)1.03 
D)3.05

Quizplus · Accepted Answer

Average inventory balance = ($160,000 + $156,000)÷ 2 = $158,000
Inventory turnover = Cost of goods sold ÷ Average inventory balance
= $488,000 ÷ $158,000 = 3.09 (rounded)

Kopas Corporation Has Provided the Following Data: the Inventory