A retail company has an average inventory turnover ratio of 12 and an average inventory value of $\$ 600,000$. Calculate the cost of goods sold (COGS) for the company.

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Accepted Answer

To calculate the cost of goods sold (COGS) for the company, we can use the formula: COGS = Average Inventory Value / Inventory Turnover Ratio Plugging in the values given: COGS = $600,000 / 12 COGS = $50,000 Therefore, the cost of goods sold for the company is $50,000.$

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