With beginning inventory at cost of 9000 ending inventory at

With beginning inventory at cost of $9,000, ending inventory at cost of $7,000, net sales of $51,000, and cost of goods sold of $46,000, the inventory turnover at cost to the nearest hundredth is

Solution

Average inventory = (beginning inventory + ending inventory)/2 = (9000 + 7000) /2 = $8000

Cost of goods sold = $46000

Inventory turnover = Cost of goods sold/ Average inventory = 46000/8000 = 5.75