Test Index

WAEC Commerce 2011 Paper

Question : 19

Total: 47

The average stock is

Solution:

Concept:

Average stock is the mean value of the opening stock and the closing stock during a trading period.

Explanation:

The formula for average stock is:

\text{Average stock} = \frac{\text{Opening stock} + \text{Closing stock}}{2}

Given opening stock

= D2{,}000

and closing stock

= D3{,}000

\text{Average stock} = \frac{2{,}000 + 3{,}000}{2} = \frac{5{,}000}{2} = D2{,}500

Turnover and purchases are not needed for this calculation.

Answer:

C. D2,500

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