Respuesta :
Answer:
10 times per year
Explanation:
Data provided in the question;
Cost of goods sold = $500,000
Beginning Merchandise Inventory = $55,000
Ending Merchandise Inventory = 45,000
Now,
Inventory turnover is calculated as:
Inventory turnover = [tex]\frac{\textup{Cost of Goods Sold}}{\textup{Average Merchandise Inventory}}[/tex]
Also,
Average Merchandise Inventory = [tex]\frac{\textup{Beginning inventory + Ending inventory}}{\textup{2}}[/tex]
or
Average Merchandise Inventory = [tex]\frac{\textup{55,000 + 45,000}}{\textup{2}}[/tex]
or
Average Merchandise Inventory = 50,000
Therefore,
Inventory turnover = [tex]\frac{\textup{500,000}}{\textup{50,000}}[/tex]
or
Inventory turnover = 10 times per year
Answer:
10
Explanation:
Inventory turnover calculation is cost of goods sold/average merchandise inventory
Average merchandise inventory is beginning merchandise + ending merchandise/2
Average Merchandise Inventory 55,000 + 45,000 = 100,000/2 = 50,000
Inventory Turnover 100,000/50,000 = 10
