Use the information below to answer the following question.
-The amount of inventory purchased during the year was:
A) $490 000.
B) $500 000.
C) $510 000.
D) $520 000.

Question

Use the information below to answer the following question.  
-The amount of inventory purchased during the year was:
A) $490 000. 
B) $500 000. 
C) $510 000. 
D) $520 000.

Quizplus · Accepted Answer

The given image shows the inventory turnover calculations for the year. Inventory turnover ratio is calculated by dividing the cost of goods sold by average inventory. We are given the inventory turnover ratio as 5.2, and the cost of goods sold as $2,660,000. Using the inventory turnover formula, we can calculate the average inventory as $510,000 ($2,660,000 ÷ 5.2). Therefore, the amount of inventory purchased during the year was $510,000.

Use the Information Below to Answer the Following Question