Inventory turnover practice problems

Marketing Unit 9. Try each one, then open the worked solution. The Credit Sprint app generates unlimited new versions with fresh numbers.

Problem 1.

A store's cost of goods sold for the year is $250,000 and its average inventory at cost is $50,000. What is its inventory turnover?

Show solution

Turnover = COGS ÷ average inventory = 250000 ÷ 50000 = 5.

Problem 2.

A store's cost of goods sold for the year is $320,000 and its average inventory at cost is $80,000. What is its inventory turnover?

Show solution

Turnover = COGS ÷ average inventory = 320000 ÷ 80000 = 4.

Problem 3.

A store's cost of goods sold for the year is $120,000 and its average inventory at cost is $20,000. What is its inventory turnover?

Show solution

Turnover = COGS ÷ average inventory = 120000 ÷ 20000 = 6.

Problem 4.

A store's cost of goods sold for the year is $480,000 and its average inventory at cost is $80,000. What is its inventory turnover?

Show solution

Turnover = COGS ÷ average inventory = 480000 ÷ 80000 = 6.

Problem 5.

A store's cost of goods sold for the year is $480,000 and its average inventory at cost is $80,000. What is its inventory turnover?

Show solution

Turnover = COGS ÷ average inventory = 480000 ÷ 80000 = 6.

Problem 6.

A store's cost of goods sold for the year is $200,000 and its average inventory at cost is $50,000. What is its inventory turnover?

Show solution

Turnover = COGS ÷ average inventory = 200000 ÷ 50000 = 4.