Ask Question
9 June, 06:10

At December 31, 2022, the following information (in thousands) was available for Ayayai Inc.: ending inventory $22,000; beginning inventory $21,000; cost of goods sold $180,600, and sales revenue $420,000. Calculate the inventory turnover and days in inventory for Ayayai. (Round answers to 1 decimal places, e. g. 15.2. Use 365 days for calculation.) Inventory turnover enter inventory turnover in times times Days in inventory enter days in inventory days

+5
Answers (1)
  1. 9 June, 06:12
    0
    Inventory turnover in days = 43.59 days

    Inventory turnover (No of times) = 8.37 times

    Explanation:

    Inventory turnover days is the average length of time it takes a business to sell its inventory before replacement.

    Inventory turnover in days

    = Average inventory / Cost of goods sold * 365 days

    Average inventory = (Opening Inventory + closing inventory) / 2

    Average inventory

    = (21,000 + 22,000) / 2

    = 21,500

    Inventory turnover in days

    (21,500/180,600) * 365 days

    =43.597 days

    Inventory turnover (No of times)

    = Cost of goods sold/Average inventory

    = 180,600/21,500

    = 8.37 times
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “At December 31, 2022, the following information (in thousands) was available for Ayayai Inc.: ending inventory $22,000; beginning inventory ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers