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 turnover in days can be calculated using the formula: $$ \text{Days} = \left( \frac{\text{Average Inventory}}{\text{Cost of Sales}} \right) \times 365 $$ First, calculate the average inventory: $$ \text{Average Inventory} = \frac{\text{Stock on hand start} + \text{Stock on hand end}}{2} = \frac{360,000 + 312,000}{2} = 336,000 $$ Then, calculate the inventory turnover in days: $$ \text{Days} = \left( \frac{336,000}{1,200,000} \right) \times 365 \approx 102.2 $$

Using the Information Below Find the Average Inventory Turnover for Vox