Asked by Vayola Nicolas on May 19, 2024
Verified
Good Grooming Supplies takes inventory quarterly and bases inventory on selling price. Beginning inventory for the year was $91,000. Inventory at the end of the first quarter was $89,500; at the end of the second quarter, $74,120; at the end of the third quarter, $82,210; and at the end of the year, $79,170. Net sales for the year equal $249,600. Compute the inventory turnover at retail.
Inventory Turnover
A ratio showing how many times a company's inventory is sold and replaced over a period.
Net Sales
Total sales revenue minus returns, allowances for damaged or missing goods, and discounts.
Quarterly
Occurring every three months or four times a year, often used in the context of financial reports and payments.
- Attain insights into the computation of inventory turnover to gauge efficiency in inventory management.
Verified Answer
CR
Learning Objectives
- Attain insights into the computation of inventory turnover to gauge efficiency in inventory management.