Question

inventory turnover ratio is 3 times. sales 180000. opening inventory 2000 more than the closing inventory . cal . opening and closing inventory when good are sold at 20% profit on cost​

Answer 1

Answer:

stock turnover ratio = cost of goods ÷ avg stock

cost of goods sold = sales - gross profit

gross profit = 1,80,000 × 20%=36,000

cost of goods = 1,80,000-36,000= 1,44,000

stock turnover ratio =cogs/ avg stock

6 = 1,44,000/avg stock

avg stock = 1,44,000/6

avg stock = 24,000

average stock = opening stock + closing stock ÷ 2

24,000 = X + X+15,000/2

48,000-15,000=2x

X= 33,000/2 = 16,500

Explanation:

@Ask The MASTER

Answer 2

Answer:

Opening Inventory = 51,000

Closing Inventory = 49,000

Explanation:

Solution :

$\sf{\underline{Inventory\: Turnover\:Ratio} =\dfrac{Cost \: of \: Goods \: Sold}{Average \: Inventory}}$

$\sf{\longrightarrow{3 \: = \: \dfrac{Cost \: of \: Goods \: Sold}{Average \: Inventory}}}$

Sales = 1,80,000

Sales = Cost of Goods Sold + Gross Profit

Let,

Cost of Goods Sold = x

$\longrightarrow$ 1,80,000 = x + 20% of x

$\longrightarrow$ 1,80,000 = $\sf{x \: + \: \frac{20}{100} x}$

$\longrightarrow$ 1,80,000 = x + 0.2x

$\longrightarrow$ 1,80,000 = 1.2x

$\longrightarrow$ x = 1,80,000 / 1.2

$\longrightarrow$ x = 1,50,000

Cost of Goods Sold = 1,50,000

G.P. = 30,000 = 20% of 1,50,000

$\sf{\longrightarrow{3 \: = \: \dfrac{150000}{Average \: Inventory}}}$

Average Inventory =

$\sf{\longrightarrow{\dfrac{150000}{3} \: = \: 50000}}$

Average Inventory = 50,000

$\sf{\underline{Average\: Inventory} = \dfrac{Ope-ning \: Inventory \: + \: Closing \: Inventory }{2}}$

Let,

Closing Inventory = x

Opening Inventory = x + 2,000

Average Inventory =

$\sf{\longrightarrow{\dfrac{Ope-ning \: Inventory \: + \: Closing \: Inventory }{2}}}$

$\sf{\longrightarrow{50000 \: = \: \dfrac{(x \: + \: 2000) \: + \: x}{2}}}$

$\sf{\longrightarrow{50000 = \dfrac{2x + 2000}{2}}}$

$\longrightarrow$ 1,00,000 = 2x + 2,000

$\longrightarrow$ 1,00,000 - 2,000 = 2x

$\longrightarrow$ 98,000 = 2x

$\longrightarrow$ x = 98,000 / 2

$\longrightarrow$ x = 49,000

Closing Inventory = 49,000

Opening Inventory =

$\longrightarrow$ x + 2,000

$\longrightarrow$ 49,000 + 2,000

$\longrightarrow$ 51,000

Opening Inventory = 51,000

Therefore,

Opening Inventory = 51,000

Closing Inventory = 49,000