Question

Tinker's 2019 cost of goods sold was $750,000 and 2018 cost of goods sold was $770,000. The inventory at the end of 2019 was $188,000 and $208,000 at the end of 2018. What was Tinker's inventory turnover during 2019?

A. 3.79
B. 3.99
C. 3.84
D. 3.89

Answer 1

A

Step-by-step explanation:

In this question , we are asked to calculate the inventory turnover during 2019.

Mathematically;

Inventory turn over = Cost of goods sold/Average inventory

From the question, we identify that the cost of goods sold = $750,000

Average inventory = (188,000 + 208,000)/2 = 396,000/2 = 198,000

Inventory turn over = 750,000/198,000 = 3.79