Why are we using COGS instead of Finished Goods in the calculation? From a Financial Statement Analysis perspective, this calculation yields how much inventory turns. This implies sales throughput which implies finished goods.

Also, arent only finished goods considered in turnover?

The 2016 financial statement of Willamette Valley Vineyards reported Net revenues of $19,425,412 and Cost of goods sold of $7,204,884. Note 3 to the financial statements reported that Inventories consisted of Winemaking and packaging materials Work-in-progress Finished goods Total inventories 2016 $ 817,836 6,634,014 4,518,806 $11,970,656 2015 $ 690,292 6,058,701 3,883,469 $10,632,462 The inventory turnover for 2016 was: Select one: A. 0.57 B. 0.64 C. 0.59 E. None of the above Rationale Inventory turnover- COGS/ Average inventory $7,204,884/[($11,970,656$10,632,462)/21-0.63740.64 The correct answer is: 0.64