Inventory Holding Period

I have the attached question about calculating inventory holding period and i can't get to the answer. The answer is 148 days, my answer is 147. I have calculated the average inventory first.

Thank you for looking.

Comments

  • dumutrobadumutroba AAT Student, AATQB Posts: 265
    Not sure why you are getting 147
    My calculation would be inventory 395200+405600/2=400400
    COS=OP+Purchases-CI = 395200+995250-405600=984850
    Inventory holding period = Inventory/COSx 365=400400/984850*365=148 days
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  • jmhjmh Registered Posts: 42
    ah I know now where I was going wrong....I did the inventory calculation correctly but the cost of sales i did wrong.

    Thank you very much.
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