1.7 question sample assesment 1
erykfrechowicz88
AAT Student, AATQB Posts: 7
I have a problem with 1.7 question
I am trying to calculate inventory holding period but not sure how to calculate inventory. I want to use formula for Inventory turnover : Inventory/Cost of Sales x 365 days . Cost of Sales = 861858 and my answer is 49.265729 based on average inventory so 50 days but correct answer should be 49 according to AAT. I am confused.
I am trying to calculate inventory holding period but not sure how to calculate inventory. I want to use formula for Inventory turnover : Inventory/Cost of Sales x 365 days . Cost of Sales = 861858 and my answer is 49.265729 based on average inventory so 50 days but correct answer should be 49 according to AAT. I am confused.
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Comments


thanks
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@kimbo86 @erykfrechowicz88 can i just ask, what figure did you use for inventory? thanks0

Inventory says average so add up the opening and closing inventory figures then divide by 2.0
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