Question

₹ 3,00,000 is the Cost of Revenue from Operations (Cost of Goods Sold).

Inventory Turnover Ratio 8 times; Inventory in the beginning is 2 times more than the inventory at the end. Calculate value of Opening and Closing Inventories

Answer 1

Let Closing Inventory = x

Opening Inventory = 2x + x = 3x

Closing Inventory = x = Rs 18,750

Opening Inventory = 3x = 3 ×18,750 = Rs 56,250