If average inventory is rs125000 and closing inventory rs 10000 less then opening inventory then value of closing inventory Will ve
Answers
Answer:
Correct option is
C
4 times
Stock turnover ratio = Cost of goods sold/ average inventory
Cost of goods sold = Rs.2,20,000
Average Inventory= [Opening inventory + Closing Inventory]/2
= [50000+60000] / 2
= Rs.55000
Now,
Stock turnover ratio = 220000/55000
= 4 times.
Answer:
Value of Closing Inventory will be Rs. 1,20,000
Explanation:
Average Inventory = Rs. 1,25,000
Closing Inventory = Rs. 10,000 less than Opening Inventory
Value of Closing Inventory = ??
Let,
Opening Inventory = x
Closing Inventory = x - 10,000
Average Inventory = Rs. 1,25,000
⇒ 1,25,000 × 2 = x + (x - 10,000)
⇒ 2,50,000 = x + (x - 10,000)
⇒ 2,50,000 = 2x - 10,000
⇒ 2,50,000 + 10,000 = 2x
⇒ 2,60,000 = 2x
⇒ x = 2,60,000/2
⇒ x = 1,30,000
Opening Inventory = Rs. 1,30,000
• Closing Inventory = x - 10,000
⇒ 1,30,000 - 10,000
⇒ 1,20,000
Closing Inventory = Rs. 1,20,000
Therefore, Value of Closing Inventory will be Rs. 1,20,000