WAEC Commerce 2011 Paper

Concept:Rate of turnover is found by dividing the cost of goods sold by the average stock held during the period.Explanation:First, calculate the cost of goods sold (COGS):COGS = Opening Stock + Purchases - Closing Stock$COGS = 2,000 + 28,000 - 3,000 = 27,000$Next, calculate the average stock:Average Stock = (Opening Stock + Closing Stock) ÷ 2$Average\ Stock = \frac{2,000 + 3,000}{2} = 2,500$Now, divide COGS by the average stock to get the rate of turnover:$Rate\ of\ Turnover = \frac{27,000}{2,500} = 10.8\ times$Answer:10.8 times (Option B).