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lisamariegp7's avatar
lisamariegp7
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6 years ago

Average days in Inventory. FIFO

Hello, I have a table of a all items in inventory each with their purchase dates, items sales, purchase cost and inventory stock at hand. I am trying to calculate the average days in inventory of th...
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v-juanli-msft's avatar
v-juanli-msft
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6 years ago

Hi lisamariegp7 

As tested, the cell E3 should be 1 based on your formula.

Also every cells in Column E has different formulas.

I don't understand the calculation rule.

Is your formula like something here?

\begin{aligned} &DSI = \frac{\text{Average inventory}}{COGS} \times 365 \text{ days}\\ &\textbf{where:}\\ &DSI=\text{days sales of inventory}\\ &COGS=\text{cost of goods sold}\\ \end{aligned