Calculate the following on 28 February 2021, the financial year-end: 4.1.1 Value of the closing stock 4.1.2 Stock turnover rate INFORMATION: The following information relates to the running shoes - NSC Accounting - Question 4 - 2021 - Paper 2

To calculate the stock turnover rate based on the information given:

1. Determine total sales value:

   • 2 216 units sold at R1 400 each and R3 100 each:
   • Let’s assume half sold at each price: $ext{Total Sales} = (1108 imes R1,400) + (1108 imes R3,100)$

   Thus,

   $= R1 550 800 + R3 434 800$

   Total sales = R 550 200.

   2. Apply the formula for stock turnover rate:

Stock Turnover Rate = rac{ ext{Cost of Goods Sold}}{ ext{Average Inventory}}

For Cost of Goods Sold, consider only the cost of the closing stock:

• Average inventory can be calculated as:

rac{ ext{Opening Stock} + ext{Closing Stock}}{2}

3. Calculate Average Inventory:

• Opening Stock = R101090
• Closing Stock = R373800

4. Calculate the Stock Turnover Rate:

   Stock Turnover Rate = rac{B}-A}{rac{(205}{2)}

   As we found earlier, this would be approximately 8.3 times.