E6-14 The cost of goods sold computations for O’Brien Company and Weinberg Company are shown below.
O'Brien Company | Weinberg Company | |
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.
(b) Which company moves its inventory more quickly?
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