109k views
5 votes
Compute the stock turnover in dollars for a product that has sales of $6,000 and an average value of inventory investment of $1,500.

User Zmofsx
by
8.4k points

2 Answers

4 votes

Answer: 4

Explanation:

Given: Cost of product sold = $6,000

Average value of inventory= $1,500

We know that the inventory turnover formula is given by :-


\text{Inventory turnover}=\frac{\text{ Cost of product sold}}{\text{Average value of inventory}}


\\\Rightarrow\ \text{Inventory turnover}=(\$6,000 )/(\$1500)\\\\\Rightarrow\ \text{Inventory turnover}=4

Therefore, the stock turnover for a product that has sales of $6,000 and an average value of inventory investment of $1,500 = 4

User Eden WebStudio
by
9.5k points
3 votes
Question: It should be inventory turnover.

Solution:
Inventory turnover = Cost of goods sold/Average inventory

Substituting the values given for cost of goods and average inventory;
Inventory turnover = 6,000/1,500 = 4
User Siddharth Makadiya
by
9.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories