Using the information below find the average inventory turnover for Vox Ltd in days. $$\begin{array} { l r }
\text { Sales } & \$ 1,800,000 \
\text { Cost of sales } & 1,200,000 \
\text { Stock on hand start } & 360,000 \
\text { Stock on hand end } & 312,000
\end{array}$$
A)102.2 days.
B)63.26 days.
C)94.8 days.
D)68 days.

Question

Using the information below find the average inventory turnover for Vox Ltd in days. $$\begin{array} { l r } 
\text { Sales } & \$ 1,800,000 \
\text { Cost of sales } & 1,200,000 \
\text { Stock on hand start } & 360,000 \
\text { Stock on hand end } & 312,000
\end{array}$$
A)102.2 days.
B)63.26 days.
C)94.8 days.
D)68 days.

Quizplus · Accepted Answer

The average inventory is (360,000 + 312,000) / 2 = 336,000. The inventory turnover ratio is Cost of Sales / Average Inventory = 1,200,000 / 336,000 = 3.57. To find the turnover in days, divide 365 by the turnover ratio: 365 / 3.57 ≈ 102.2 days.

Using the Information Below Find the Average Inventory Turnover for Vox