Just need to ask a question regarding the calculation of TurnOver Ratio and DOH for quarter (90 days) also I used the turnover ratio to determine if this item is Fast, Slow or Non moving item
If I have a beginning stock of $1,000 and the closing stock is Zero and the COGS is $1,000, this means that I sold all stock in the calculating period.
I used this formula for DOH = Inventory on Hand / Average Usage and for Turns = 90 / DOH
The issue is; when I’m using this formula, the DOH = 0 and turn = error, then I cannot determine if this item is fast, slow or non but it supposed to be FAST item
I do appreciate your advise in this.