Sales are 500000 and cost of goods sold is 370000 Beginning

Sales are $500,000 and cost of goods sold is $370,000. Beginning and ending inventories are $25,000 and $38,000, respectively. How many times did the company turn its inventory over during this period? OA. 11.7 times OB. 15.9 times ° C. 4.1 times OD, 5.2 times

Solution

Inventory turnover= Cost of goods sold/avergae inventory

Average inventory=(beg inv+end inv)/2

=(25000+38000)/2=31500

turnover=370000/31500

=11.7

option A