Question

Avg stock 80000 inventory turnover ratio 6 times selling price 25% above cost find gp and gpr

Answer 1

Answer:

RS.12000

Explanation:

stock turnover ratio=cost of goods sold/average inventor  6=cost of good sold/8000   cost of goods sold=RS.48000  selling price=25% above cost   therefore gross profit=cost of goods sold × 25%   =48000 × 25% =RS.12000                                                                                      

Answer 2

Answer:

Gross profit= ₹120000
Gross profit ratio= 20%

Explanation:

Gross Profit:
Gross profit is the difference between sales/revenue and cost of goods sold, divided by sales/revenue. It is expressed as a percentage and is calculated as deducting the cost of the goods sold from the selling price and then dividing it by the same selling price.

Given:
Average inventory/stock= 80000
Inventory/stock turnover ratio= 6 times
Selling price= 25% above cost
Now,
Inventory/stock turnover ratio= Cost of goods sold/Average Inventory
⇒ $6=\frac{COGS}{80000}$
∴ Cost of goods sold= ₹480000

Gross Profit = Cost of goods sold × Gross margin
= 480000×25%
= ₹120000

∴ Gross Profit= ₹120000

Now, Selling price= 480000+120000
= ₹600000

Gross Profit Ratio= Gross Profit/Sales × 100%
= $\frac{120000}{600000}$×$100$%
= 20%

Note: Since figure of sales has not been mentioned in the question, 'Selling price' has been considered as sales.

∴ Gross profit ratio= 20%

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