Methods of Costing

Costing - Phase (I & II)

Title

45:30

8 of 24 completed

5 of 15 completed

38 of 100 completed

8 of 20 completed

Indian Economy - Understanding the basics of Indian economic system

Cash sales: Rs. 80,000

Credit sales: Rs. 2,00,000/-

Return inwards: Rs. 10,000

Opening Stock: Rs. 25,000/-

Closing Stock: Rs. 30,000/-

Gross Profit: 25%

Inventory turnover ratio will be:

7.36 times

8.36 times

9.36 times

None of the above

Inventory Turnover Ratio= Cost of Goods sold/Average Inventory at Cost

Net sales= 80,000 + 2,00,000 – 10,000= Rs. 2,70,000/-

Cost of goods sold= Net sales – Gross Profit

= 2,70,000 – 67,500= 2,02,500/-

Average inventory= 25000 + 30,000/2= 27,500/-

Inventory turnover ratio=2,02,500/27,500= 7.36 times