Inventory Holding Period

In Osbourne 'Financial Statements' 2016 edition, page 229, question 7.4
The following information is available:
Sales revenue for the year.......... 450,000
Purchase for the year................. 250,000
Average Inventories for the year.. 50,000
The inventory holding period is:
a) 73 days, b) 41 days, c) 58 days, or d) 88 days
I used the wrong formula so know it's one I'll need to keep working on but according to my book and online the calculation should be Inventories / Cost of Sales x 365. So I took COS as (Purchases + Average Inventories) = 300,000 when to get to the answer (on page 325) it should be Purchases only 250,000.
Nowhere to hand can I find this mentioned which is very annoying. I'll look back over my distance learning notes in case they mention but when a Tutorial book doesn't give you a chance at the correct answer you have to wonder what is the point.
Is it because as an 'average' Inventory the Opening (+) and Closing (-) would cancel each other out?
The following information is available:
Sales revenue for the year.......... 450,000
Purchase for the year................. 250,000
Average Inventories for the year.. 50,000
The inventory holding period is:
a) 73 days, b) 41 days, c) 58 days, or d) 88 days
I used the wrong formula so know it's one I'll need to keep working on but according to my book and online the calculation should be Inventories / Cost of Sales x 365. So I took COS as (Purchases + Average Inventories) = 300,000 when to get to the answer (on page 325) it should be Purchases only 250,000.
Nowhere to hand can I find this mentioned which is very annoying. I'll look back over my distance learning notes in case they mention but when a Tutorial book doesn't give you a chance at the correct answer you have to wonder what is the point.
Is it because as an 'average' Inventory the Opening (+) and Closing (-) would cancel each other out?
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Comments
(I knocked off zeros to make it easier to type.)
Inventories: £50,000
Cost of Sales (Purchases): £250,000 (You're not given opening/closing stock so don't worry yourself with that).
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