Formulas For Chapter 6 Flashcards
1
Q
Ending inventory (average - cost)
A
Cost of goods available for sale / total units
2
Q
Net income (merchandising company)
A
Sales - cost of goods sold - operating expense - tax (income tax expense)
3
Q
Average inventory
A
(Beginning inventory + ending inventory) / 2
4
Q
Inventory turnover
A
Costs of goods sold / average inventory
5
Q
Days in inventory
A
365 / inventory turnover
