Shaffer Company presents the following data for 2012. Net Sales, 2012 $3,007,124 Net Sales, 2011 93,247 Cost of Goods Sold, 2012 2,000,326 Cost of Goods Sold, 2011 1,000,120 Inventory, beginning of 2012 341,169 Inventory, end of 2012 376,526

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jitushashi120 jitushashi120 · Answer 1 · 2019-12-05T05:32:51+01:00

Answer:

5.6

Explanation:

Here is the question for the data given: What is the merchandise inventory turnover for 2012?

Given: Inventory, beginning of 2012- $341,169;

Inventory, end of 2012- $376,526.

Cost of goods sold, 2012- $2000326.

Formula; inventory turnover rate = [tex]\frac{\textrm{Cost of goods sold}}{\textrm{average inventory}}[/tex]

First, lets calculate average of inventory

Average inventory= [tex]\frac{Inventory\ beginning + Inventory\ ending}{2}[/tex]

Average inventory= [tex]\frac{341169 + 376526}{2} = \$ 358847.2[/tex]

Now, lets find out inventory turnover rate.

Inventory turnover rate= [tex]\frac{2000326}{358847.2} = 5.57[/tex]

∴ Inventory turnover rate is 5.57 ≅ 5.6