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Princeton, Inc. maintained average inventory of $26,248 for the year 2004. Recently managers at Princeton discovered...

Princeton, Inc. maintained average inventory of $26,248 for the year 2004. Recently managers at Princeton discovered that inventory sits on the shelf for approximately 60 days before being sold. What it the cost of goods sold (COGS) for the Princeton, Inc. for 2004? (Assume 360 days a year).

157,488

$185,431

$209,984

$287,654

None of the Above

Solutions

Expert Solution

Given about Princeton, Inc.,

Average inventory = $26248

It takes 60 days to sell the inventory,

=> average sales in inventory = 60 days

So, COGS = average inventory*360/average sales in inventory = 26248*360/60 = $157488

Option A is correct.

jeff jeffy answered 2 years ago
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