Barnett Company had the following records:

What is Barnett's average days in inventory for 2022? (rounded)

A. 37.6 days
B. 38.8 days
C. 36.9 days
D. 36.5 days

Question

High School

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Answer :

Zaibfr Zaibfr · Answer 1 · 2025-01-16T06:19:04-05:00

The Barnett Company's average days in inventory for 2017 is 37.6 days. Therefore, the correct option is A.

We will use the following formula to calculate the average days in inventory:

Average Days in Inventory = (365 * Average Inventory) / Cost of Goods Sold

First, we need to find the average inventory for 2017:

Average Inventory = (Beginning Inventory + Ending Inventory) / 2

From the records, we know the ending inventory for 2017 ($32,650) and 2016 ($30,490), so we can find the average inventory:

Average Inventory = ($30,490 + $32,650) / 2 = $63,140 / 2 = $31,570

Now, we can calculate the average days in inventory for 2017:

Average Days in Inventory = (365 * $31,570) / $306,300 = 11,523,550 / 306,300 ≈ 37.6 days

Hence, average days in inventory for 2017S is option A: 37.6 days.

Note: The question is incomplete. The complete question probably is: Barnett Company had the following records:

2017 2016

Ending inventory $32,650 $30,490

Cost of goods sold $306,300 $313,600

What is Barnett's average days in inventory for 2017 (rounded) A) 37.6 days B) 38.9 days C) 36.9 days D) 36.5 days.

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