Suppose Maestro'sMaestro's had cost of goods sold during the year of $ 230 comma 000$230,000. Beginning merchandise inventory was $ 35 comma 000$35,000 , and ending merchandise inventory was $ 45 comma 000$45,000. Determine Maestro'sMaestro's inventory turnover for the year. Round to the nearest hundredth.

Question

Rebecca Schmitt

Business

23 June, 12:10

Suppose Maestro'sMaestro's had cost of goods sold during the year of $ 230 comma 000$230,000. Beginning merchandise inventory was $ 35 comma 000$35,000 , and ending merchandise inventory was $ 45 comma 000$45,000. Determine Maestro'sMaestro's inventory turnover for the year. Round to the nearest hundredth.

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Answers (1)

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Trenton Peck · Answer 1

The answer is: Maestro's inventory turnover was 5.75 times

Explanation:

In order to find the inventory turnover we use the following formulas:

Inventory turnover = COGS / Average inventory Average inventory = (beginning inventory + ending inventory) / 2

First we find the average inventory:

Average inventory = ($35,000 + $45,000) / 2 = $40,000

Now we can calculate the inventory turnover:

Inventory turnover = $230,000 / $40,000 = 5.75 times