Question

The records of Alberta Incorporated included the following information: cost of goods sold $1,900,000, beginning inventory $445,000, ending inventory $485,000. What is the number of days to sell?

Answer 1

The number of days to sell is approximately 60.66 days.

Step-by-step explanation:

To calculate the number of days to sell, we need to calculate the average daily cost of goods sold. The formula is:

Average Daily Cost of Goods Sold = Cost of Goods Sold / Number of Days

In this case, the cost of goods sold is $1,900,000. To find the number of days, we need to subtract the beginning inventory ($445,000) from the ending inventory ($485,000) and divide it by the average daily cost of goods sold:

Number of Days to Sell = (Ending Inventory - Beginning Inventory) / Average Daily Cost of Goods Sold

Plugging in the numbers, we get:

Number of Days to Sell = ($485,000 - $445,000) / ($1,900,000 / 365)

Calculating this expression, we find that the number of days to sell is approximately 60.66 days.