-Calculate C Co's Inventory Turnover Ratio and the Days' Sales

question 45

Multiple Choice

-Calculate C Co's inventory turnover ratio and the days' sales in inventory for 20X2.

• A) 5.89 times and 62.0 days
• B) 18.41 times and 19.8 days
• C) 5.58 times and 65.4 days
• D) 6.11 times and 59.7 days

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Definitions:

Weighted-Average Method

An inventory costing method that assigns a weighted average cost to each unit in inventory, used in both periodic and perpetual inventory systems.

Cost Control

The practice of managing and reducing business expenses through efficient operations and spending.

Weighted-Average Method

Inventory costing method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all materials purchased during a period.

Work in Process

Work in process refers to materials and components that are part of a manufacturing process but have not yet been completed as finished goods.