The Inventory Period for 2010 Is (Use Average Inventory)

question 12

Multiple Choice

The inventory period for 2010 is (use average inventory) :

• A) 60.73 days.
• B) 62.18 days.
• C) 115.14 days.
• D) 123.31 days.
• E) 119.3 days.

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Definitions:

Direct Materials Used

The raw materials that are directly incorporated into a finished product and can easily be traced to it.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time, showing its financial position.

Cost of Goods Sold

The expenses directly linked to the creation of a company's sold products, comprising both materials and labor.

Factory Rent

Refers to the cost incurred for renting a facility or space for manufacturing operations, a common type of fixed expense for manufacturers.