Question

What amount of average stock should be carried by a costume jewelry department with net sales of $920,000 for the year and a stock turn of 4.0?

Answer 1

Answer: $230,000

Step-by-step explanation:

The average stock that should be carried by a costume jewelry department will be calculated by dividing the net sales by the turnover. This will be:

= Net sales / Turnover

= $920,000 / 4.0

= $230,000