Question

Average Inventory at Cost: $18,127
Average Inventory at Retail: $24,870
Cost of Goods Sold: $46,971
Retail Sales: $63,410

Find the stock turnover at cost. Round to the nearest hundredth.

Answer 1

Answer:

2.59

Step-by-step explanation:

Given that average inventory at cost = 18127/-

Cost of goods sold =46971

Hence stock turnover ratio at cost = cost of goods sold/average inventory

= 46971/18127 =2.59

(There is another method also to calculate stock inventory ratio

Stock inventory ratio = Retail sales/Average inventory at retail

=63410/24870

=2.5496

=2.55)

Since our question asks stock turnover at cost we get answer as

2.59