If opening inventory is Rs 120000.
cost of goods sold is Rs 1000000
and Stock Turnover Ratio is 5
Times, then closing inventory will
be
Answers
Answered by
14
Answer:
2 80 000
Explanation:
Inventory Turnover ratio = CORFO/Average Inventory
5=10,00,000/Average Inventory
Average Inventory = 10,00,000/5 = 2,00,000
Average Inventory = Opening Inventory + Closing Inventory/2
2,00,000 = 1,20,000+Closing Inventory/2
4,00,000 - 1,20,000 = Closing Inventory
Closing Inventory = 2,80,000
Have A Good Day Mate :)
Similar questions
Math,
1 month ago
Computer Science,
3 months ago
Math,
3 months ago
English,
9 months ago
Science,
9 months ago