The Following Information Was Available for Pete Company at December

question 78

Multiple Choice

The following information was available for Pete Company at December 31, 2022: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $984,000; and sales $1,350,000.Pete's inventory turnover in 2022 was

• A)10.9 times.
• B)12.3 times.
• C)14.1 times.
• D)16.9 times.

---

Definitions:

Variable Costing

A costing method where variable manufacturing costs are treated as product costs, and fixed manufacturing overhead is treated as a period cost.

Net Income

The amount of earnings left after all expenses, including taxes and costs, have been subtracted from total revenue.

Fixed Overhead

Fixed overhead consists of the consistent, ongoing costs not directly tied to production levels within a business, such as rent, insurance, and salaries.

Inventory

Items held by a company for sale in the ordinary course of business or to be used in producing goods and services for sale.