Question : Rs.2,00,000 is the cost of revenue from operations, Inventory turnover 8 times; Inventory at the beginning is only 1.5 times than the Inventory at the end. The values of Opening inventory is
Option 1: Rs. 25,000
Option 2: Rs. 30,000
Option 3: Rs. 45,000
Option 4: Rs. 27,000
Correct Answer: Rs. 30,000
Solution : Answer = Rs 30000
Cost of revenue from operation = 2,00,000; Net closing inventory = $\ x$; Opening inventory= $\ 1.5x$
Inventory Turnover Ratio = $\frac{\text{Cost of revenue from operation}}{\text{Average Inventory}}$
8 times = $\frac{\text{2,00,000}}{\text{Average Inventory}}$
Average Inventory = 2,00,000/8
= 25000
$\begin{aligned} & \text { Average Inventory }=\frac{1.5 x+x}{2} \\ & 25000=\frac{2.5 x}{2} \end{aligned}$
$2.5x = 50,000$
$x=\frac{50,000}{2.5}=20,000$
Closing Inventory = Rs 20,000
Op. inventory = $1.5\times20,000$ = 30,000 Hence, the correct option is 2.
Question : Opening inventory Rs.1,00,000: Closing inventory Rs.1,50,000: Purchase Rs.6,00,000: Carriage Rs.25,000: Wages Rs. 2,00,000. calculate inventory turnover ratio -
Option 1: 7.4 Times
Option 2: 6.2 Times
Option 3: 7 Times
Option 4: 6.6 Times
Question : Opening Inventory Rs.28,000
Closing Inventory Rs.52,000
Revenue from Operations (Sales) Rs.6,00,000
Gross Profit 25% on the cost of revenue from operations
The inventory turnover ratio will be ………
Option 1: 8 times
Option 2: 2.4 times
Option 3: 1.2 times
Option 4: 12 times
Question : Opening Inventory Rs.29,000; Closing Inventory Rs.31,000; Revenue from Operations (Sales) Rs.3,20,000; Gross Profit Ratio 25% on Revenue from Operations.
Inventory Turnover Ratio will be
Option 1: 6 times
Option 2: 4 times
Option 3: 8 times
Option 4: None of the above
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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