Question

Last year an operation had a cost of food consumed for meats of $310,000. In that year the operation had a beginning meat inventory of $15,000 and ending meat inventory of $16,000. What was the operation’s inventory turnover for meat last year?

a. 20.
b. 21.
c. 22.
d. 23.

Answer 1

Inventory turnover= 20

Step-by-step explanation:

Giving the following information:

Last year an operation had a cost of food consumed for meats of $310,000. In that year the operation had a beginning meat inventory of $15,000 and ending meat inventory of $16,000.

To determine the inventory turnover, we need to use the following formula:

Inventory turnover= cost of goods sold/ average inventory

Average inventory= (15,000 + 16,000)/2= 15,500

Inventory turnover= 310,000/15,500= 20

The company will sale and replace inventory 20 times in the period.