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For the first quarter it would be the average of Jan, Feb, and Mar ending inventory) Days of Inventory Ending Balance Inventory Daily Cost of Goods Sold Annual Cost of Goods Sold Average Monthly Cost of Goods Sold (base on 3 month moving average) times 12 Daily Cost of Goods Sold Annual Cost of Goods Sold 365 For Quarters, Year to Date Periods, Year Totals: Annual Cost of Goods Sold Cost of Goods Sold for the time period divided by the number of months and times 12 Daily Cost of Goods Sold Annual Cost of Goods Sold 365 Appendix A Calculating Days of Inventory and Inventory Turnover in Excel Cells with a yellow background are input from your financial statements.
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