Asked by Carla Marie on Apr 23, 2024
Verified
Junk Jewelry, Inc. takes inventory annually and bases inventory on selling price. Beginning inventory for the year was $38,600. Ending inventory for the year was $31,600. Net sales for the year equal $97,600. Compute the inventory turnover at retail.
Inventory Turnover
A ratio indicating how fast a company sells and replaces its stock of goods during a particular period.
Net Sales
The total revenue from sales after deducting returns, allowances for damaged or missing goods, and discounts.
Inventory
The complete list of items such as property, goods in stock, or the contents of a building.
- Learn the process of computing inventory turnover to evaluate the efficiency of inventory management strategies.
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Learning Objectives
- Learn the process of computing inventory turnover to evaluate the efficiency of inventory management strategies.