Inventory Turnover = Cost of goods sold/Average Inventory
Inventory Turnover:
2021 6.3 =1200000/((170000+210000)/2)
2022 9.5 =1425000/((210000+90000)/2)
2
Days in Inventory:
2021 57.9 or 57.8 days =365/6.3
2022 38.4 days =365/9.5
Inventory turnover is an economic ratio displaying how usually an employer has sold and changed inventory in the course of a given duration. An organization can then divide the days within the length with the aid of the inventory turnover system to calculate the times it takes to promote the stock on hand.
Your question is incomplete. Please read below to find the missing content.
Early in 2022, Fedor Company switched to a just-in-time inventory system. Its sales and inventor
amounts for 2021 and 2022 are shown below.
2022
2021
$3,120,000
1,200,000
170,000
210,000
Sales revenue
Cost of goods sold
Beginning inventory
Ending inventory
$3,713,000
1,425,000
210,000
90,000
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