Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $8 cash per unit (for a total cost of $8,000).Cost of goods sold $ 633,825 $ 416,650 $ 381,300 Ending inventory 97,400 87,750 92,500 Use the above information to compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, Year 3 and Year 2. From Year 2 to Year 3, did Palmer improve its (a) inventory turnover and (b) days' sales in inventory?

Answer rating: 100% (QA)

To calculate inventory turnover you use the formula textInventory Turnover fracCost of Goods SoldAve... View the full answer