The cost of goods sold computations for Gouda Company and Edam Company are shown below.

Instructions

a. Compute inventory turnover and days in inventory for each company. (Round inventory turnover to two decimal places and days in inventory to the nearest whole day.)

b. Which company moves its inventory more quickly?

Transcribed Image Text:

Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gouda company 47,000 Edam company 71,000 200,000 290,000 247,000 361,000 58,000 69,000 189,000 292,000