Based on the information in Table B-1, and given that the stockturn rate is 10, the cost of sales is:
A) $400,000.
B) $70,000.
C) $60,000.
D) $65,000.

Question

Quizplus · Accepted Answer

The stockturn rate is calculated as the cost of sales divided by the average inventory. If the stockturn rate is 10, it implies that the cost of sales is 10 times the average inventory. Without the average inventory value, we assume the cost of sales is the highest value provided, which is $400,000.

Based on the Information in Table B-1, and Given That