JacquieSue
Mar 14, 2007, 10:47 AM
Please check my answer:
Cost of merchandise sold 12/31/05 $ 172,900 12/31/06 $150,600
Inventory 12/31/05 16,000 12/31/06 12,000
Based on the above information compute the inventory turnover.
The problem is - the instructions do not say to average the cost of mdse.sold. My book does not show this either. Would this be correct?
16,000+12,000=28,000/2=14,000
172,9000+150,600=323,500/2=161,750
161,750/14000=11.6
I also did this without averaging the cost of mdse. sold.
150,600/14000=10.8
Cost of merchandise sold 12/31/05 $ 172,900 12/31/06 $150,600
Inventory 12/31/05 16,000 12/31/06 12,000
Based on the above information compute the inventory turnover.
The problem is - the instructions do not say to average the cost of mdse.sold. My book does not show this either. Would this be correct?
16,000+12,000=28,000/2=14,000
172,9000+150,600=323,500/2=161,750
161,750/14000=11.6
I also did this without averaging the cost of mdse. sold.
150,600/14000=10.8