If the Inventory Turnover Is 7

question 270

Short Answer

If the inventory turnover is 7.3 times, and the average inventory was $600,000, the cost of goods sold during the year was $______________ and the average days to sell the inventory was ______________ days.

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Definitions:

Direct Materials

Raw materials that are directly incorporated into a finished product and can be directly assigned to the product.

Standard Costs

Predetermined cost estimates used to measure the cost performance of an operation, allowing for budgeting and variance analysis against actual costs.

Standard Price

A predetermined cost of a resource or product, used for budgeting and cost control purposes.

Standard Quantity

A predetermined amount of input that should be used in producing a unit of output.