
A company provides the following information for the year ended 31 May 2021.
- total purchases – £175,000
- cash purchases – £35,000
- inventory 1 June 2020 – £12,000
- inventory 31 May 2021 – £15 000
What is the rate of inventory turnover (rounded to the nearest whole number)?
Select ONE answer:
- 11 times
- 12 times
- 13 times
- 16 times
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 3
- Not correct
- Not correct
- Correct – COS / Average Inventories ==> (£12,000 + £175,000 – £15,000) / ((£12,000 + £15,000) / 2)
- Not correct
This work is licensed under a Creative Commons Attribution 4.0 International License.