Inventory Turnover Calculation Example, Sample, Illustration, Calculation,Concepts Help Online
Looking for Inventory Turnover Calculation Example, Sample, Illustration, Calculation help to do your assignment, homework or project then you are at the right place.
Inventory Turnover Calculation Meaning
The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is managed by comparing cost of goods sold with average inventory for a period. It calculates the number of times per period a business is able to replace its inventories.Inventory Turnover Ratio depends upon sales and purchases of inventory. Therefore, there must be a coordination between these two components.
The inventory turnover ratio is calculated as the cost of goods sold for a period divided by the average inventory for that period.Inventory turnover ratio is calculated using the following formula
Inventory Turnover = Cost of Goods Sold/Average Inventories
Cost of goods sold = Beginning Inventories + Cost of Goods Manufactured – Ending Inventories
Average Inventories = (Beginning Inventories + Ending Inventories)/2
Services We Offer
Services Provided for Accounting
Accounting always put student on worries and stress. But with Assignment Consultancy for your help, you can remove all your worries by going through our various services:-
- Financial Accounting Homework Help
- Accounting Assignment Help Online
- Financial Accounting Assignment Help
- Managerial Accounting Homework Help
- Do my accounting Homework
- Accounting Case Study Assignment Help
- Finance accounting case studies assignment help
- Taxation homework help
- US tax codes homework help
- Advance Accounting homework help
- Cost Management Homework Help
- Australian Taxation Assignment help
- Ratio analysis assignment help
- Accountancy online exam help
- Accounts online exam help
Features for Accounting Assignment Help Services
We believe in providing no plagiarism work to the students. All are our works are unique and we provide Free Plagiarism report too on requests.
Best Customer Service
Our customer representatives are working 24X7 to assist you in all your assignment needs. You can drop a mail to email@example.com or chat with our representative using live chat shown in bottom right corner.
Three Stage Quality Check
We are the only service providers boasting of providing original, relevant and accurate solutions. Our three stage quality process help students to get perfect solutions.
All our works are kept as confidential as we respect the integrity and privacy of our clients.
Most of our clients are from UK, USA, Australia, Canada , UAE, New Zealand, Doha, Qatar, Muscat, Netherlands, France, Italy, Great Britain, Singapore, Malaysia looking for quality and accurate solutions.
Yash Batra, Student , UK University
“Great Experts to provide real time Accounts help services. They are just best in their approach”
Reham Fayad, Student MBA, USA
“They have some of the best USA experts to provide Accounts help online and also help me in my online exams.”
Graham Golith, Lancashire University, UK
“Best place to get all help in Accounts Essay and Exams. Will definitely recommend to all”
Inventory Turnover Calculation Example Explanation
Example: Calculate inventory turnover and days inventories outstanding based on the information given below
Opening inventories $25,000
Closing inventories $30,000
Cost of goods manufactured $245,000
Cost of goods sold = $25,000 + $245,000 – $30,000 = $240,000
Average inventories = ($25,000 + $30,000) ÷ 2 = $25,500
Inventory turnover ratio = $240,000 ÷ $27,500 = 8.73
Days inventories outstanding = 365 ÷ 8.73 = 41.8
If you are looking for similar Inventory Turnover Calculation Example type assignment help,click here . You can visit us for more examples here.