Use the following information to answer the question below
Use the following information to answer the question below
Opening stock---------2,300
Purchases-------------11,874
Sales--------------------18,600
Closing stock-----------3,600
Cost of goods sold---11,500
What is the rate of stock turnover?
Use the following information to answer the question below
Opening stock---------2,300
Purchases-------------11,874
Sales--------------------18,600
Closing stock-----------3,600
Cost of goods sold---11,500
What is the rate of stock turnover?
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Correct Answer: Option D
Explanation:
Rate of stock of turnover=
cost of goods sold
average stock
Average stock = \(\frac{2,300 + 3,000}{2}\) = 2,650
\(\frac{11,500}{2650}\) = 4.33 = 4 times
Rate of stock of turnover=
cost of goods sold
average stock
Average stock = \(\frac{2,300 + 3,000}{2}\) = 2,650
\(\frac{11,500}{2650}\) = 4.33 = 4 times