The cost of goods sold computations for O'Brien Company and Weinberg Company are shown below.
|
O'BrienCompany |
WeinbergCompany |
| Beginning inventory |
$45,000 |
$71,000 |
| Cost of goods purchased |
200,000
|
290,000
|
| Cost of goods available for sale |
245,000 |
361,000 |
| Ending inventory |
55,000
|
69,000
|
| Cost of goods sold |
$190,000
|
$292,000
|
Instructions
(a) Compute inventory turnover and days in inventory for each company.