Question

Caruso, inc. has an inventory turnover rate of 8 times. if its cost of goods sold is $150,000, then

Answer 1

Inventory turnover rate = 8 times
Cost of goods sold = $150,000
Then the average inventory of company is $18,750.
This is how we calculate this;
Cost of goods sold / inventory turnover rate =
$150,000 / 8 = $18,750.