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