Question :
If stock turnover ratio = 6 times; Average stock = Rs.8,000; Selling price = 25% above cost. What is the amount of gross profit?
Option 1: Rs.4,000
Option 2: Rs.2,000
Option 3: Rs.12,000
Option 4: Rs.10,000
Correct Answer: Rs.12,000
Solution :
6 = Cost of goods sold/ 8000
Cost of goods sold = Rs.48000
Selling price = 25 % above cost
Therefore Gross profit = Cost of goods sold x 25%
= 48000 x 25%
= Rs.12,000
Hence the correct answer is option 3.
Question : Average Inventory Rs.80,000
Inventory Turnover Ratio 6 times
Selling Price 25% above cost
Gross profit is -------
Option 1: Rs 1,20,000
Option 2: Rs 80,000
Option 3: Rs 60,000
Option 4: None of the above
From the following data, calculate Inventory Turnover Ratio: Total Sales Rs. 5,00,000; Sales Return Rs. 50,000; Gross Profit Rs. 90,000; Closing Inventory Rs. 1,00,000; Excess of Closing Inventory over opening inventory Rs. 20,000.
Option 1: 6 Times
Option 2: 4 Times
Option 3: 3 Times
Option 4: 5 Times
Question : Average Inventory Rs.95,000
Inventory Turnover Ratio 3 times
Gross Profit 25% of Revenue from Operations. Cost of revenue from operation will be
Option 1: Rs 3,00,000
Option 2: Rs 2,85,000
Option 3: Rs 2,00,000
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