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Sagot :
the average value of the firm's inventory is $47,698
Step 1
Avg Inventory Period = (Number of Days in Period/Inventory Turnover Ratio)
Inventory Turnover Ratio= (Cost of Goods Sold/Avg Inventory)
Step 2
inventory= 93 days
costs of goods sold = $187,200
multiply the cost of items sold with days in inventory, then divide the result by the time period, which is typically 365 days, to determine cost of average inventory.
average value of Inventory = $187,200 × 93 / 365
⇒ $47,698
What is the average inventory?
An estimation of the worth or quantity of a certain commodity or group of goods over two or more specified time periods is known as average inventory. The median value of the same data set may differ from the average inventory, which is the mean value of an inventory during a specific time period.
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