Question

find inventory turnover ratio:
opening inventory of materials 210000 closing inventory 120000 purchase of materials 500000 opening inventories of finish goods 700000 closing inventories of finish goods 90000 opening inventory of work in progress 50000 closing inventory 40000 wages 10000 carriage inwards 20000 power/gas/fuel 28000

Answer 1

Answer:

INVENTORY TURNOVER RATIO:-- cost of goods sold/average inventory

COST OF GOOD SOLD:-- OPENING INVENTORY + PURCHASE OF MATERIAL - CLOSING INVENTORY

AVERAGE INVENTORY:-- OPENING INVENTORY + CLOSING INVENTORY/2