Question

The following information is available for Oriole Company at December 31, 2018: beginning inventory $84000; ending...

The following information is available for Oriole Company at December 31, 2018: beginning inventory $84000; ending inventory $116000; cost of goods sold $1250000; and sales $1770000. Oriole’s inventory turnover in 2018 is

17.7 times.

10.7 times.

12.5 times.

15.0 times.

Business   Accounting   
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Answer #1
Answer:
Average Inventory
              = ( Beginning inventory + Ending inventory ) / 2
              =   ( $ 84,000 + $ 116,000 ) / 2
              =     $ 200,000 / 2
              =      $ 100,000
Inventory Turnover
                = Cost of Goods Sold / Average Inventory
                =    $ 1,250,000 / $ 100,000		 12.5 times
Option (C ) is Correct
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