Question

3,00,000 is the cost of goods sold, inventory turnover 8 times; stock at the beginning is 2 times more than the
stock at the end. Calculate the values of opening and closing stocks.
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Answer 1

Answer:

Let opening stock = x

closing stock = x(1.5)

cost of good sold =200,000

Inventory turn over Ratio =8Times

Inventory turn over Ratio= cost of good sold /Average Inventory

8=200,000/x/2+1.5x/2

8=200,000/2.5x/2

8=400,000/2.5x

20x=400,000

x=400,000/20

x=20,000

opening stock x=20,000

closing stock=x(1.5)

closing stock=20,000*1.5

closing stock=30,000

Answer opening stock=20,000

closing stock=30,000

Answer 2

Answer:

there is some mistake in the above answer