Asked by Angel Barrancaa on May 22, 2024
Verified
PQI Quality, Inc. takes inventory semiannually and bases inventory on selling price. Beginning inventory for the year was $90,800. Inventory at the end of the first six months was $108,000. Ending inventory for the year was $97,600. Net sales for the year equal $357,740. Compute the inventory turnover at retail.
Inventory Turnover
A metric indicating the number of times a business's stock is sold and replenished during a specific timeframe.
Net Sales
Sales revenue minus deductions for returns, allowances for damaged or missing items, and discounts.
Semiannually
Occurring twice a year or every six months, often used in the context of payments, interest accrual, or reporting periods.
- Acquire understanding of calculating inventory turnover for evaluating the effectiveness of inventory management.
Verified Answer
SP
Learning Objectives
- Acquire understanding of calculating inventory turnover for evaluating the effectiveness of inventory management.