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Financial statement data at December 31 for Alpine Company are as follows: Cost of goods sold$1,050,000 Inventories: Beginning of year380,000 End of year320,000 Determine the number of days' sales in inventory for the year. a.121.7 days b.132.1 days c.118.8 days d.111.2 days

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abiolataiwo2015

The number of days' sales in inventory for the year is: a.121.7 days .

Number of days' sales in inventory

Using this formula

Number of days' sales in inventory=Average inventory/ Cost of goods sold×365

Let plug in the formula

Number of days' sales in inventory = [$380,000 + $320,000) / 2]/$1,050,000 ×365

Number of days' sales in inventory=($700,000/2)/$1,050,000 × 365

Number of days' sales in inventory=$350,000/$1,050,000×364

Number of days' sales in inventory=121.66 days

Number of days' sales in inventory=121.7 days(Approximately)

Inconclusion  the number of days' sales in inventory for the year is: a.121.7 days .

Learn more about number of days' sales in inventory here:https://brainly.com/question/26710668

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