If Inventory Turnover Is 20 and Cost of Goods Sold

question 65

Short Answer

If inventory turnover is 20 and cost of goods sold is $100,000, what is the average aggregate inventory value? _______________________

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Definitions:

LIFO Method

Last-In, First-Out method; an inventory valuation technique where the goods or materials purchased last are assumed to be the first ones used or sold.

Cost of Goods Sold

The total cost associated with making or buying the goods that a company has sold during a particular period.

Journal Entry

A record in accounting that notes the debit and credit transactions affecting the financial statements.

Interim Financial Report

A financial statement reported for a period shorter than the fiscal year, typically quarterly, providing an update on a company's financial performance and position.