Exercise 6-15 (Part Level Submission) The cost of goods sold computations for Br

Question

Exercise 6-15 (Part Level Submission) The cost of goods sold computations for Bramble Company and Sheffield Company are shown below. Bramble Company Sheffield Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory 45,500 191,000 236,500 55,000 $181,500 Company 74,500 290,000 364,500 71,500 $293,000 Cost of goods sold (a1) x Your answer is incorrect. Try again. Compute inventory turnover for each company. (Round answers to 2 decimal places,e-g. 15.25) Bramble Company Sheffield Company Inventory turnover LINK TO TEXT Attempts: 2 of 3 use rivacy PolicY 1 2000-2018JohnVileyasons.Inc. All Rights Reserved. A Division of John wiley&Sons;,Inc,

Explanation / Answer

Inventory turnover = Cost of goods sold / Average inventory

Bramble company:

Inventory turnover = $181,500 / [($45,500 + $55,000) / 2] = 3.61

Sheffield company:

Inventory turnover = $293,000 / [($74,500 + $71,500) / 2] = 4.01

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