Stock Turnover - PEV

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:08AM in AAT student discussion
Can anyone help me with a calculation please?<BR><BR>I'm doing the past paper for PEV June 2004, and I can't work out how they've calculated the Stock Turnover (in months) on task 2.1. Can anyone tell me which figures they've used to come to the "Actual" answer?<BR><BR>Thanks in advance<BR><BR>Lynsey x

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Stock Turnover - PEV

    the formula is COS/Cl.Stock X 12, you will get the answer<BR><BR>240,000/2,289,600 X 12 = 1.2 Actual<BR><BR>200,000/2,400,000 X 12 = 1 Budgeted<BR><BR><BR>I hope this will help you <BR><BR>AH Sadak<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Stock Turnover - PEV

    Hi Lynsey<BR><BR>Stock turn over is: closing stock divided by cost of sales multiplied by 12 months.<BR><BR>for actual: 240,000 / 2289,600 X 12 = 1.2<BR><BR>for budget: 200,000 / 2400,000 X 12 = 1<BR><BR>That one got me too! <BR><BR>Truffle
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Stock Turnover - PEV

    Well I tried COS / Closing Stock X 12, but to me that reads as 2,289,600 / 240,000 X 12 which obviously isn't right.<BR><BR>Closing Stock / COS X 12, or 240,000 / 2,289,600 X 12, gives the right answer though.<BR><BR>Thanks for your help with that. I was just interpreting the formula incorrectly, so I didn't believe my book! Hehe!

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