Ward Inc. had a beginning inventory of $$ \$ 26,800 $$ and an ending inventory of $$ \$ 52,650 $$. If the cost of goods sold was $$ \$ 305,000 $$, calculate the inventory turnover. (Round to the nearest tenth.) Select one: a. 7.4 times b. 8.7 times c. 6.8 times d. 7.7 times

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We first compute the average inventory using the formula

$$
\text{Average Inventory} = \frac{\text{Beginning Inventory} + \text{Ending Inventory}}{2}
$$

Substitute the given values:

$$
\text{Average Inventory} = \frac{26\,800 + 52\,650}{2} = \frac{79\,450}{2} = 39\,725
$$

Next, the inventory turnover is calculated as

$$
\text{Inventory Turnover} = \frac{\text{Cost of Goods Sold}}{\text{Average Inventory}}
$$

Substitute the values:

$$
\text{Inventory Turnover} = \frac{305\,000}{39\,725} \approx 7.7
$$

Thus, the inventory turnover is approximately $$ 7.7 $$ times.

The correct answer is:

d. 7.7 times
The inventory turnover is approximately 7.7 times.

Ward Inc. had a beginning inventory of and an ending inventory of . If the cost of goods sold was , calculate the inventory
turnover. (Round to the nearest tenth.)
Select one:
a. 7.4 times
b. 8.7 times
c. 6.8 times
d. 7.7 times

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Ward Inc. had a beginning inventory of and an ending inventory of . If the cost of goods sold was , calculate the inventory turnover. (Round to the nearest tenth.) Select one: a. 7.4 times b. 8.7 times c. 6.8 times d. 7.7 times