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?
- 7 times
- 6 times
- 5 times
-
4 times
The correct answer is: 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