Jones Company has $5,000,000 of average inventory and
cost of sales of $30,000,000. Using a 365-day year, calculate the
firm’s inventory conversion ... Accounting MCQs | Accounting MCQs

Jones Company has $5,000,000 of average inventory and
cost of sales of $30,000,000. Using a 365-day year, calculate the
firm’s inventory conversion period.

30.25 days.60.83 days.45.00 days.72.44 days.Show Result

Correct - Your answer is correct.

Wrong - Your answer is wrong.

Detailed Answer

(b) The requirement is to calculate the inventory
conversion period. The inventory conversion period is calculated
as average inventory/(cost of sales per day). Answer (b) is
correct because $5,000,000/($30,000,000/365) = 60.83 days.