Im doing PEV june 06 - please help me with stock

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gingervicki
gingervicki Registered Posts: 87 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
Hi im doing june 06 and im on section 2 and have come unstuck at stock turnover.

My calculation i thought you did
stock
Cost of sales x 365 to get it in days

But its not what the answer says and im confoooooooosed now.

Please help clarify

thanks

vicki

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  • dobbieobby
    dobbieobby Registered Posts: 231 Dedicated contributor 🦉
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    Havent looked at the paper, but isnt it stock/COSS x 365? Because stock is bought??
  • wolfe
    wolfe Registered Posts: 121 Dedicated contributor 🦉
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    hi gingervicki

    the question asks for STOCK TURNOVER not STOCK TURNOVER IN DAYS!!!

    the stock turnover formula is cost of sales/ stock . this will give the answer as 6.18 times. which means the that the stock will be soldout 6 times a yr

    the formula u wrote is absolutely right but its for stock turnover IN DAYS

    hope this clears it
  • gingervicki
    gingervicki Registered Posts: 87 Regular contributor ⭐
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    hi, thanks for the replies, i havent been taught it any other was, so if it just says stock turnover im now sorted, thanks

    vicki

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