Question

0 25. calculate inventory turnover ratio: cost of material consumed Rs 4,70,000,
purchase of stock in trade Rs 6,00.000, openir inventory Rs 1,50,000, closing
inventory Rs 2,50.000. wages paid Rs 18,000, carriage paid Rs 12,000.(2 marks)
Your answer make a full solution ​

Answer 1

avg inventory= 1,50,000+2,50,000/2 =2, 00,000

cost of goods sold = 6,00,000+1, 50,000-250,000

= 500,000

inventory turnover ratio = 5,00,000/2,00,000

=2.5 times