Based on the following data for the current year,what is the inventory turnover?

A)7.2
B)3.6
C)3.2
D)4.2

Question

Based on the following data for the current year,what is the inventory turnover?

A)7.2 
B)3.6 
C)3.2 
D)4.2

Quizplus · Accepted Answer

Inventory turnover is calculated by dividing cost of goods sold by average inventory. Using the data provided, the cost of goods sold is $126,000 ($25,000 + $51,000 + $50,000), and the average inventory is $35,000 (($40,000 + $30,000)/2). Therefore, the inventory turnover is 3.6 ($126,000/$35,000).

Based on the Following Data for the Current Year,what Is