Question

Net sales $296,000 Cost of goods sold 138,000 Average inventory 50,000 What is the average days in inventory (round to the nearest whole day)?

Answer 1

Answer:

132 days

Explanation:

average days in inventory = number of days in a period / inventory turnover

Inventory turnover = costs of good sold / average inventory

Inventory turnover = 138,000 / 50,000 = 2.76

assuming a 365 day period, average days in inventory = 132.25 days = 132 days