I have a problem with 1.7 question
I am trying to calculate inventory holding period but not sure how to calculate inventory. I want to use formula for Inventory turnover : Inventory/Cost of Sales x 365 days . Cost of Sales = 861858 and my answer is 49.265729 based on average inventory so 50 days but correct answer should be 49 according to AAT. I am confused.
![]()
I am trying to calculate inventory holding period but not sure how to calculate inventory. I want to use formula for Inventory turnover : Inventory/Cost of Sales x 365 days . Cost of Sales = 861858 and my answer is 49.265729 based on average inventory so 50 days but correct answer should be 49 according to AAT. I am confused.
