Asked by Isaiah Harrison on May 19, 2024
Verified
Forman and Brasso Furniture Company had ending inventory of $146,400 this year, ending inventory of $152,200 last year, and $194,400 as cost of goods sold. Compute the inventory turnover rate.
Ending Inventory
The total value of all unsold goods remaining at the end of an accounting period.
Inventory Turnover Rate
A measure of how often inventory is sold and replaced over a period, indicating the efficiency of inventory management.
Cost Of Goods Sold
The immediate expenses related to the manufacturing of products a company sells.
- Evaluate the frequency of inventory turnover.
Verified Answer
FD
Learning Objectives
- Evaluate the frequency of inventory turnover.