Resident college grad answers, gross sales minus present value.
This is a very simple calculation. Days to Sell Inventory(or Days in Inventory) = Average Inventory / Annual Cost of Goods Sold /365 Average Inventory = (Beginning Inventory + Ending Inventory) / 2 To calculate this ratio for a quarter instead of a year use the following variation: Days to Sell Inventory (or Days in Inventory) = Average Inventory / "Quarterly" Cost of Goods Sold /"90" Average Inventory = (Beginning Inventory + Ending Inventory) / 2
It is ok with there is no opening or closing inventory in that case where company is starting business first month and also there would be no beginning inventory if in last month there were no closing inventory in that case purchases are considered as cost of goods sold.
yea mon
beginning work in process + requisted for manufacturing ( direct material + direct labor + man. overhead ) = cost of goods completed + ending work in process
inventory turnover ratio==cogs/average inventory average inventory=opening inventory + closing inventory/2 average inventory =4500+5500/2 =5000 inventory turnover ratio = 20000/5000 = 4
read your textbook
Beginning inventory minus ending inventory plus purchases (cost of goods sold) divided by liquor sales equals liquor cost, which should be between 22% and 28%, if you want to be a profitable business.
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory and Average Inventory = ( Beginning Inventory + Ending Inventory ) / 2
For the following period.
Beginning inventory is a closing inventory for last period and that's why shown as a current assets in the assets side of balance sheet. If business has started first year of activities even than beginning inventory is an asset of company and shown under current assets of balance sheet.
You calculate average change in inventory by dividing the turnover by how many times it has turned over. The number you get is the average.
Generally inventory turnover period is calculated as: Sales/Inventory Also by, Cost of Goods Sold/ Average Inventory