Carlos company had beginning inventory of $80,000, ending inventory of $110,000, cost of goods sold of $285,000, and sales of $475,000. carlos's days in inventory is: select one:
a. 73 days.
b. 121.7 days.
c. 102.5 days.
d. 84.5 days.

b. 121.7 days.

Explanation:

Days in inventory formula tells how many days a firm wait for its inventory to convert into sales.

So let us look at the formula of Days in Inventory;

Days in Inventory =

To find the days in inventory first we need to find Inventory Turnover which can be calculated by the following formula;

Inventory Turnover =

Inventory Turnover =

Inventory Turnover = 3 times

Lets put the value of Inventory Turnover in the Days in Inventory formula above, as;

Days in Inventory =

Days in Inventory = 121.7 days

This means that in a year the days it takes a Carlos Company to transform the inventory into finished goods is 121.7 days.

c

explanation: