Amanufacturing plant averaged $740 of raw materials .$320 of work in process inventory and $1010 of finished goods inventory during the month .if the cost of goods sold this month amounted to $10,000 what is the inventory turnover for the month?

4.83 times

Explanation:

The computation of the inventory turnover is shown below:

= Cost of goods sold ÷ average inventory

where,  

Average inventory = Raw material inventory + work in progress inventory + finished goods inventory

= $740 + $320 + $1,010

= $2,070

And, the cost of good sold is $10,000

Now put these values to the above formula  

So, the answer would be equal to  

= $10,000 ÷ $2,070

= 4.83 times

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