Determine the inventory conversion period


Problem:

Your firm's cost of goods sold (COGS) average $2,000,000 per month, and it keeps inventory equal to 50% of its monthly COGS on hand at all times.

Required:

Question: Using a 365-day year, what is its inventory conversion period?

Note: Please describe comprehensively and provide step by step solution.

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Accounting Basics: Determine the inventory conversion period
Reference No:- TGS0888451

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