Question

a company has an average inventory at cost of $16,270, and cost of goods sold for the same period is $82,617. find the stock turnover at cost. the stock turnover at cost is (round to two decimal places.)

Explanation:

Step1: Recall the formula for stock turnover at cost

The formula for stock turnover at cost is $\text{Stock Turnover at Cost} = \frac{\text{Cost of Goods Sold}}{\text{Average Inventory at Cost}}$.

Step2: Substitute the given values

We know that the cost of goods sold is $\$82,617$ and the average inventory at cost is $\$16,270$. Substituting these values into the formula, we get $\text{Stock Turnover at Cost} = \frac{82617}{16270}$.

Step3: Perform the division

Calculating $\frac{82617}{16270} \approx 5.08$.

Answer:

5.08