Question

With beginning inventory at cost of 9000 ending inventory at vost of 7000 net sales of 51000 and cost of goods sold at 46000 the inventory at cost to the nearest hundredth is?

Answer 1

Answer:

The Inventory turnover at cost is 5.75.

Step-by-step explanation:

Given:

With beginning inventory at cost of 9000 ending inventory at cost of 7000 net sales of 51000 and cost of goods sold at 46000.

Now, to find the inventory turnover at cost.

Beginning Inventory = 9000.

Ending Inventory = 7000.

Net Sales = 51000.

Cost of Goods Sold = 46000.

So, we need to find the average inventory by putting formula:

$Average\ Inventory=\frac{(Beginning\ Inventory+Ending\ Inventory)}{2}$

$Average\ Inventory=\frac{(9000+7000)}{2}$

$Average\ Inventory=\frac{16000}{2}$

$Average\ Inventory=8000.$

Now, to get the Inventory turnover at cost we put formula:

$Inventory\ turnover=\frac{Cost\ of\ Goods\ Sold}{Average\ Inventory} \\\\Inventory\ turnover=\frac{46000}{8000} \\\\Inventory\ turnover=5.75.$

Thus, Inventory turnover at cost to the nearest hundredth = 5.75.

Therefore, the Inventory turnover at cost is 5.75.