Question

Carlos Company had beginning inventory of $80,000, ending inventory of $110,000, cost of goods sold of $285,000, and sales revenue of $475,000. Carlos’s days in inventory is ________ days. A : 84.5 B : 102.5 C : 73 D : 121.7

Answer 1

122 days

Step-by-step explanation:

Days In Inventory= COGS÷ Average Inventory ×365days

Average Inventory = Opening Inventory+Closing Inventory

2

Average Inventory= 80,000+110,000

2

Average Inventory = 95000

Inventory Turnover Ratio = 285000

95000

Inventory turnover=3

Days in Inventory = 365÷3

122 days