The cost of goods sold computations for Alpha Company and Omega Company are shown below.

Instructions
(a) Compute inventory turnover and days in inventory for each company.
(b) Which company moves its inventory morequickly?

Transcribed Image Text:

Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Alpha Company 45,000 200,000 245,000 55,000 $190,000 Omega Company 71,000 290,000 361,000 69,000 $292,000 Cost of goods sold