A Company That Produces Specialized Video Equipment Had Cost of Goods

question 2

Multiple Choice

A company that produces specialized video equipment had cost of goods sold last year of $127,000,000.The average value of inventory for raw materials,work-in-process,and finished goods are shown in the table below: If the company operates 50 weeks per year,then the number of inventory turns would be

• A)0.0979.
• B)4.3795.
• C)8.9784.
• D)10.2090.

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Definitions:

Prepaid Insurance

An asset account that represents insurance payments made in advance of the period in which the insurance coverage applies.

Cash Amount

The total value of cash on hand, including currency, coins, and balances in demand deposit accounts.

Accounts Receivable

Money owed to a business by its clients for goods or services that have been delivered or sold but not yet paid for.