Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 15 - No. 46)
If the average inventory is $11,000 and the rate of inventory turnover is 8.5 times, what is the cost of sales?
$93,500
$1,294
$19,500
$13,500
Explanation
Cost of Sales = Average inventory * Rate of Inventory Turnover. Therefore, $11,000 * 8.5 = $93,500
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