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15240672380's Question
Chemistry
Posted 9 months ago

A retail company has an average inventory turnover ratio of 12 and an average inventory value of $600,000\$ 600,000. Calculate the cost of goods sold (COGS) for the company.
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Answer from Sia
Posted 9 months ago
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 = 600,000/12COGS=600,000 / 12
COGS = 50,000

Therefore, the cost of goods sold for the company is $50,000.

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