The Grocery Chain (GC)reported an Average Inventory of $349,589 in Its

question 4

Multiple Choice

The Grocery Chain (GC) reported an average inventory of $349,589 in its last annual report.If GC's annual Cost of Goods Sold was $5,800,000,approximately how many days did GC hold its inventory?

• A) 30 days
• B) 15 days
• C) 97 days
• D) 22 days

---

Definitions:

Underapplied Overhead

A situation where the allocated manufacturing overhead for a period is less than the actual overhead incurred, leading to underestimating product costs.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs exceed the actual overhead costs incurred.

Ending Work in Process Inventory

The value of partially completed goods or products in a company at the end of an accounting period.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs are more than the actual overhead costs incurred.