Question

At December 31, 2020, the following information was available for Blossom Company: ending inventory $40,250, beginning inventory $54,500, cost of goods sold $281,000, and sales revenue $358,000. Calculate inventory turnover for Blossom Company. (Round answer to 1 decimal place, e.g. 1.5.) Inventory turnover enter Inventory turnover in times rounded to 1 decimal place times eTextbook and Media Calculate days in inventory for Blossom Company. (Round answer to 1 decimal place, e.g. 1.5. Use 365 days for calculation.) Days in inventory $enter Days in inventory rounded to 1 decimal place days

Answer 1

Answer:

Inventory Turnover =5.9 Times

Days in Inventory =62 days

Explanation:

Calculation for inventory turnover for Blossom Company using this formula

Inventory Turnover = Cost of Goods Sold / Average Inventory

Let plug in the formula

Inventory Turnover =$281,000 / [($54,500 + $40,250) / 2]

Inventory Turnover =$277,800 / 47,375

Inventory Turnover =5.9 Times

Therefore The inventory turnover for Blossom Company will be 5.9 Times

Calculation of days in inventory for Blossom Company using this formula

Days in Inventory = 365 / Inventory Turnover

Let plug in the formula

Days in Inventory =365 / 5.9

Days in Inventory =62 days

Therefore days in inventory for Blossom Company will be 62 days