$3$ of $4$

CC$7-1($Algo$)$ Accounting for Changing Inventory Costs $[$LO $7-3,$ LO $7-5]$

In October, Nicole eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking each product line had exceeded the profits earned. In December, a supplier asked her to sell a prepackaged spa kit. Feeling she could manage a single product line, Nicole agreed. Nicole's Getaway Spa $($NGS$)$ would make monthly purchases from the supplier at a cost that included production costs and a transportation charge. NGS would keep track of its new inventory using a perpetual inventory system.

On December $31$ of last year, NGS had $15$ units at a total cost of $$5\mathrm{.}00$ per unit. Nicole purchased $20$ more units at $$7\mathrm{.}00$ in February. In March, Nicole purchased $15$ units at $$9\mathrm{.}00$ per unit. In May, $50$ units were purchased at $$8\mathrm{.}80$ per unit. In June, NGS sold $50$ units at a selling price of $$11\mathrm{.}00$ per unit and $35$ units at $$12\mathrm{.}00$ per unit.

CC$7-1($Algo$)$ Part $3$

$3.$ Calculate the inventory turnover ratio, using the inventory purchased on December $31$ as the beginning inventory. $($Round your answers to $2$ decimal places.$)$

$\backslash$table$[[$Inventory Turnover Ratio$],[$Numerator$,=$