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14 July, 09:02

Tinker's 2019 cost of goods sold was $750,000 and 2018 cost of goods sold was $770,000. The inventory at the end of 2019 was $188,000 and $208,000 at the end of 2018. What was Tinker's inventory turnover during 2019?

A. 3.79

B. 3.99

C. 3.84

D. 3.89

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Answers (1)
  1. 14 July, 09:16
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    A

    Explanation:

    In this question, we are asked to calculate the inventory turnover during 2019.

    Mathematically;

    Inventory turn over = Cost of goods sold/Average inventory

    From the question, we identify that the cost of goods sold = $750,000

    Average inventory = (188,000 + 208,000) / 2 = 396,000/2 = 198,000

    Inventory turn over = 750,000/198,000 = 3.79
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