Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 6 - Reporting and Analyzing Inventory - Self-Test Questions - Page 312: 11



Work Step by Step

turnover=cost of goods sold/average inventory =$285000\div[(80000+110000)\div2]$ =$285000\div95000$ =$3$ days in inventory=365/turnover =$365\div3=121.\overline6$
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