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A company had a cost of goods sold of $3 million and have turned over their inventory 4.6 times. What would be the average aggregate inventory value?

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Final answer:

The average aggregate inventory value for the company with a cost of goods sold of $3 million and an inventory turnover of 4.6 times is approximately $652,173.91.

Step-by-step explanation:

To calculate the average aggregate inventory value, we first need to understand that inventory turnover is the ratio of cost of goods sold (COGS) to average inventory. Given that a company had a cost of goods sold of $3 million and turned over their inventory 4.6 times, we can calculate the average aggregate inventory by dividing the COGS by the inventory turnover ratio.

Average Aggregate Inventory Value = COGS / Inventory Turnover

When we plug in the numbers:

  • COGS = $3,000,000
  • Inventory Turnover = 4.6 times

This would give us:

Average Aggregate Inventory Value = $3,000,000 / 4.6

Average Aggregate Inventory Value = $652,173.91 (rounded to two decimal places)

Therefore, the average aggregate inventory value for the company would be approximately $652,173.91.

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