Anonymous asked in Business & FinanceOther - Business & Finance · 1 decade ago

I have an accounting question for Inventory Turnover?

I know the equation is Inv. turnover = COGS / Avg. inventory. This is the problem given...

Jan 1 beginning inventory $0

COGS 14,272

March 31 ending inventory 680

I'm stumped on how to get the avg. inventory. Would I take (0+680) / 3 since its over 3 months? or is it (0+680) / 2?? Or am I even doing it correctly? Please help me!

So the question asks me to do the following: compute inventory turnover and days' sales in inventory for the three months ended March 31, 2008.

1 Answer

  • 1 decade ago
    Favorite Answer

    It would be 680/2, since you only have 2 numbers to average.

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