Cedus bags had the following data in respect of material X for the year ended 31st March 2021 Opening stock =90,000 Purchases during the year= 270,000 Closing stock =110,000 Calculate : (i) Inventory turnover ratio; and (ii) the number of days for which the average inventory is held.

Cedus bags had the following data in respect of material X for the year ended 31st March 2021 Opening stock =90,000 Purchases during the year= 270,000 Closing stock =110,000 Calculate : (i) Inventory turnover ratio; and (ii) the number of days for which the average inventory is held.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 16PB: Use the following information relating to Medinas Company to calculate the inventory turnover ratio,...

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Question

Cedus bags had the following data in respect of material X for the year ended 31st March 2021.
Opening stock =90,000
Purchases during the year= 270,000
Closing stock =110,000
Calculate :
(i) Inventory turnover ratio; and (ii) the number of days for which the average inventory is held.

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