If beginning and ending inventories are $100,000 and 150,000,respectively,and the cost of goods sold is $450,000,what is the inventory turnover ratio?
A)4.50
B)3.00
C)3.60
D)0.28

Question

Quizplus · Accepted Answer

Inventory turnover ratio = Cost of goods sold / Average inventory
Average inventory = (Beginning inventory + Ending inventory) / 2
Average inventory = ($100,000 + $150,000) / 2 = $125,000

Inventory turnover ratio = $450,000 / $125,000 = 3.60
Therefore, the answer is C.

If Beginning and Ending Inventories Are $100,000 and 150,000,respectively,and the Cost