1. Annual retail sales for Store X are $150,000 and average retail inventory is $10,000. What...

 

Transcribed Image Text:

1. Annual retail sales for Store X are $150,000 and average retail inventory is $10,000. What is annual inventory turnover? 2. Refer to the table below to answer parts a - d. Unit sales Total sales Cost of Goods Sold Average inventory in units Average inventory at retail Average inventory at cost 100,000 $2,000,000 $500,000 10,000 $600,000 $100,000 a. What is inventory turnover at retail? b. What is inventory turnover at cost? c. What is inventory turnover using unit sales? d. Discussion: Why are the results from a, b, and c different? 3. What will sales be if average retail inventory is $48,000 and inventory turnover is 7.8? Discussion: Inventory turnover is 7.8. Does this mean the entire physical inventory has been replaced 7.8 times during the year? 1. Annual retail sales for Store X are $150,000 and average retail inventory is $10,000. What is annual inventory turnover? 2. Refer to the table below to answer parts a - d. Unit sales Total sales Cost of Goods Sold Average inventory in units Average inventory at retail Average inventory at cost 100,000 $2,000,000 $500,000 10,000 $600,000 $100,000 a. What is inventory turnover at retail? b. What is inventory turnover at cost? c. What is inventory turnover using unit sales? d. Discussion: Why are the results from a, b, and c different? 3. What will sales be if average retail inventory is $48,000 and inventory turnover is 7.8? Discussion: Inventory turnover is 7.8. Does this mean the entire physical inventory has been replaced 7.8 times during the year?

Answer rating: 100% (QA)

1 Annual inventory turnover To calculate the annual inventory turnover we need to divide the cost of goods sold by the average inventory on hand Cost ... View the full answer