pev section 2 december 2003

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
tryiny to find average age of stock in months<BR>the formula is closing stock divided by cost of sales I cannot find the cost of sales figure can someone please help.<BR><BR>thanks

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    pev section 2 december 2003

    I don't have the answers, but I would use the purchases figure as opening and closing stocks are the same so would not affect the cost of sales.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    pev section 2 december 2003

    Hi there<BR><BR>Just finished this one myself. In this instance the formula is:<BR>Stock / materials issued to production X 12<BR><BR>£1440,000 / £5760,000 X 12 = 3 months.<BR><BR>Hope this helps<BR><BR>Truffle<BR><BR>P.s Don't worry it will all come together in the end.<BR><BR>

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