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1.7 question sample assesment 1

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.


Comments

  • kimbo86kimbo86 HertfordshireRegistered Posts: 10
    Hi
    It's asking for the answer to the nearest whole day so 49.26 needs to be rounded down to 49.
    Zoynal98erykfrechowicz88
  • erykfrechowicz88erykfrechowicz88 AAT Student, AATQB Posts: 7
    thanks
  • BethGBethG Registered Posts: 5
    edited April 2017
    @kimbo86 @erykfrechowicz88 can i just ask, what figure did you use for inventory? thanks
  • IrrorateIrrorate Registered Posts: 140
    Inventory says average so add up the opening and closing inventory figures then divide by 2.
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