alejandrashaikh5839 alejandrashaikh5839
  • 02-09-2020
  • Business
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How often is the annual inventory turnover for items like​ potatoes, corn, oil and​ seed, which are all​ perishable?

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buchinnamani208
buchinnamani208 buchinnamani208
  • 04-09-2020

Answer:

200 times

Explanation:

Inventory turnover means how many times a business has sold and bought inventory for a period, in this case annually(annual inventory turnover). From the above, the perishables often have annual inventory turnovers of 200.To calculate annual inventory turnover such as for perishable goods tomatoes, given cost of goods(tomatoes) we calculate average turnover =beginning inventory +closing inventory /2. We then divide cost of goods by average turnover to get inventory turnover

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