1.7 question sample assesment 1

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erykfrechowicz88
erykfrechowicz88 Registered Posts: 7
in Management Accounting: Decisions and Control
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.


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  • kimbo86
    kimbo86 Registered Posts: 10
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    Hi
    It's asking for the answer to the nearest whole day so 49.26 needs to be rounded down to 49.
  • erykfrechowicz88
    erykfrechowicz88 Registered Posts: 7
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    thanks
  • BethG
    BethG Registered Posts: 5
    edited April 2017
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    @kimbo86 @erykfrechowicz88 can i just ask, what figure did you use for inventory? thanks
  • Irrorate
    Irrorate Registered Posts: 139
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    Inventory says average so add up the opening and closing inventory figures then divide by 2.

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