The average sale period for Year 2 is closest to:

A) 58.5 days
B) 33.4 days
C) 217.3 days
D) 56.2 days

Inventory turnover = Cost of goods sold ÷ Average inventory balance*
= $780 ÷ $125 = 6.24
* Average inventory balance = ($120 + $130)÷ 2 = $125
Average sale period = 365 days ÷ Inventory turnover
= 365 days ÷ 6.24 = 58.5 days (rounded)
Reference: CH14-Ref6
Data from Dunshee Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730.