Stoney Brooke Inc has sales of 1060000 and cost of goods sol

Stoney Brooke, Inc. has sales of $1,060,000 and cost of goods sold of $892,500. The firm had a beginning inventory of $45,000 and an ending inventory of $60,000. What is the length of the inventory period?

Hi,

Please find the detailed answer as follows:

Inventory Turnover Ratio = Cost of Goods Sold/(Average Inventory) = 892500/(45000 + 60000)/2 = 17

Length of Inventory Period = 365/Inventory Turnover Ratio = 365/17 = 21.47 days

Answer is 21.47 days.

Thanks.

Stoney Brooke, Inc. has sales of $1,060,000 and cost of goods sold of $892,500. The firm had a beginning inventory of $45,000 and an ending inventory of $60,000

Stoney Brooke Inc has sales of 1060000 and cost of goods sol

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