Find the stock turnover at cost and at retail. Round to the nearest hundredth.
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A)Turnover at cost = 2.36 Turnover at retail = 2.34
B)Turnover at cost = 5.17 Turnover at retail = 5.12
C)Turnover at cost = 5.12 Turnover at retail = 5.17
D)Turnover at cost = 2.19 Turnover at retail = 12.09

Question

Find the stock turnover at cost and at retail. Round to the nearest hundredth.
-
A)Turnover at cost = 2.36 Turnover at retail = 2.34 
B)Turnover at cost = 5.17 Turnover at retail = 5.12 
C)Turnover at cost = 5.12 Turnover at retail = 5.17 
D)Turnover at cost = 2.19 Turnover at retail = 12.09

Quizplus · Accepted Answer

The stock turnover at cost and at retail is calculated by dividing the total cost or retail value of goods sold by the average inventory value. Based on the given information, the turnover at cost is 5.17 (calculated by dividing $3,221,000 cost of goods sold by $622,000 average inventory) and the turnover at retail is 5.12 (calculated by dividing $5,108,000 retail value of goods sold by $997,000 average inventory). Therefore, the best choice is B.

Find the Stock Turnover at Cost and at Retail