ACCOUNTING MCQ

[Mohammad Hasham]

26 Donald’s rate of inventory turnover was 10 times. The inventory on 1 January was $800 and the
inventory on 31 December was $1000.
What were his purchases?
A $8800 B$9000 C $9200 D$10 800 ............. HOW TO DO THIS.

 

[Sarah Paul]

26 Donald’s rate of inventory turnover was 10 times. The inventory on 1 January was $800 and the
inventory on 31 December was $1000.
What were his purchases?
A $8800 B$9000 C $9200 D$10 800 ............. HOW TO DO THIS.

Equation for rate f inventory turnovre is cost of sales/average inventory
avg iventory wil be opning invntry+clsng invntry/2 so therefore avg inventry wil be 900
u hav to multiply 900*10
u can get this if u substitute it with the equation and therefore da answer be 9000
since u dnt hav other information and since purchases is an item of cost of sales your ans fr purchases wil be 9000
and your answer wil be B

 

[Mohammad Hasham]

thanks ......

 

[Cryptids]

Equation for rate f inventory turnovre is cost of sales/average inventory
avg iventory wil be opning invntry+clsng invntry/2 so therefore avg inventry wil be 900
u hav to multiply 900*10
u can get this if u substitute it with the equation and therefore da answer be 9000
since u dnt hav other information and since purchases is an item of cost of sales your ans fr purchases wil be 9000
and your answer wil be B

Although the exam is over, but I would like to correct your concept !
Actually $9000 will be the cost of sale and in order to get purchases the following formula is used:
Cost of sales add closing stock less opening stock. => 9000+1000-800= $9200 so answer will be C !

 

[Sarah Paul]

OM

Although the exam is over, but I would like to correct your concept !
Actually $9000 will be the cost of sale and in order to get purchases the following formula is used:
Cost of sales add closing stock less opening stock. => 9000+1000-800= $9200 so answer will be C !

OMG! Muhammad Hasham im sooooo sorry i forgot about working back!!!! IM RELE RELE RELE SORRY but thankgod we didnt get a question like this. And Muhammad Hasham IM RELE SORRY once again.
And Cryptids thankyou for helping us before Paper 2 and i think i have to like ur post a million times

 

[Cryptids]

OM

OMG! Muhammad Hasham im sooooo sorry i forgot about working back!!!! IM RELE RELE RELE SORRY but thankgod we didnt get a question like this. And Muhammad Hasham IM RELE SORRY once again.
And Cryptids thankyou for helping us before Paper 2 and i think i have to like ur post a million times

Haha Np. !

 

[Mohammad Hasham]

OM

OMG! Muhammad Hasham im sooooo sorry i forgot about working back!!!! IM RELE RELE RELE SORRY but thankgod we didnt get a question like this. And Muhammad Hasham IM RELE SORRY once again.
And Cryptids thankyou for helping us before Paper 2 and i think i have to like ur post a million times

no problem Shara Nafaz........

 

[Sarah Paul]

no problem Shara Nafaz........

God i was feeling so guilty. Thank You