Question

Based on the following data for the current year, what is the inventory turnover? Sales on account during year $700,000 Cost of goods sold during year 270,000 Accounts receivable, beginning of year 45,000 Accounts receivable, end of year 35,000 Inventory, beginning of year 90,000 Inventory, end of year 110,000 Oa. 2.7 Ob. 3.0 Oc. 2.5 Od. 9.7

          Based on the following data for the current year, what is the inventory turnover?
Sales on account during year
$700,000
Cost of goods sold during year
270,000
Accounts receivable, beginning of year
45,000
Accounts receivable, end of year
35,000
Inventory, beginning of year
90,000
Inventory, end of year
110,000
Oa. 2.7
Ob. 3.0
Oc. 2.5
Od. 9.7

Based on the following data for the current year, what is the inventory turnover?
Sales on account during year
700,000
Cost of goods sold during year
270,000
Accounts receivable, beginning of year
45,000
Accounts receivable, end of year
35,000
Inventory, beginning of year
90,000
Inventory, end of year
110,000
Oa. 2.7
Ob. 3.0
Oc. 2.5
Od. 9.7

Added by Bego-A R.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Brooke Bussoletti

08/29/2023

Step 1

To do this, we add the beginning inventory ($90,000) and the ending inventory ($110,000) and divide by 2: Average inventory = (Beginning inventory + Ending inventory) / 2 Average inventory = ($90,000 + $110,000) / 2 Average inventory = $200,000 / 2 Average Show more…

Show all steps