Page No 4.109:
Question 66:
From the following details, calculate Inventory Turnover Ratio:
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|
` |
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Cost
of Revenue from Operations (Cost of Goods Sold) |
4,50,000 |
|
Inventory
in the beginning of the year |
1,25,000 |
|
Inventory
at the close of the year |
1,75,000 |
Answer:
|
Inventory tunover ratio |
= Cost of
goods sold / Average Stock
|
|
Cost of Goods Sold |
= 4,50,000 |
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Average Stock |
= Opening Stock + Closing Stock/2 =1,25,000+1,75,000/2 = 1,50,000 |
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Inventory turnover ratio |
=4,50,000/1,50,000 = 3 Times |
Page No 4.110:
Question
67: From the following information,
calculate Inventory turnover ratio;
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Opening Inventory Purchases Carriage Inwards |
`40,000 `92,000 `4,000 |
Closing Inventory Wages Freight outwards |
`12,000 `6,000 `7,500 |
Answers:
Inventory turnover ratio= Cost of revenue from operation/ average inventory
Inventory turnover ratio= 1,30,000 / 26,000 = 5 Times
|
Cost of revenue from operations ( cost of goods sold) |
= opening inventory + purchases + carriage inward + wages - closing inventory |
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|
= 40,000 + 92,000 + 4,000 + 6,000-12,000 |
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= 1,30,000 |
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Average inventory |
= opening inventory + closing inventory / 2 |
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= 40,000 + 12,000 / 2 |
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|
= 52,000 / 2 |
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= 26,000 |
Page No 4.110:
Question 68:
Cost of Revenue from Operations (Cost of Goods Sold) `5,00,000;
Purchases `5,50,000; Opening Inventory `1,00,000.
Calculate Inventory Turnover Ratio.
Answer:
Cost of Goods Sold = Opening Inventory + Purchases − Closing Inventory
5,00,000 = 1,00,000 + 5,50,000 − Closing Inventory
Closing Inventory = 1,50,000
|
Average Stock |
= Opening Stock + Closing Stock/2 =1,00,000+1,50,000/2 = 1,25,000 |
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Inventory tunover ratio |
= Cost of goods sold / Average Inventory =5,00,000/1,25,000 =4 times |
Page No 4.110:
Question 69:
Calculate
Inventory Turnover Ratio from the following information:
Opening Inventory is
`50,000; Purchases `3,90,000; Revenue
from Operations, i.e., Net Sales `6,00,000; Gross Profit Ratio 30%.
Answer:
Cost
of Goods Sold = Net Sales – Gross Profit
= ` 6,00,000 – 30% of
` 6,00,000
= ` 6,00,000 – ` 1,80,000 = ` 4,20,000
Cost of Goods Sold = Opening Inventory + Purchases – Closing Inventory
` 4,20,000 = ` 50,000 + ` 3,90,000 – Closing Inventory
Closing Inventory = ` 50,000 + ` 3,90,000 – ` 4,20,000
= ` 20,000
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Average Stock |
=
Opening Stock + Closing Stock/2 =50,000+20,000/2=35,000 |
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|
Stock turnover ratio |
=
Cost of Goods sold / Average Stock |
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|
=4,20,000/35,000 |
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=12
Times |
Page No
4.110:
Question
70:
Calculate Inventory Turnover Ratio from the following:
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` |
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Opening
Inventory |
58,000 |
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Closing
Inventory |
62,000 |
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Revenue
from Operations, i.e., Sales |
6,40,000 |
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Gross
Profit Ratio 25% |
|
Answer:
Sales = 6,40,000
Gross Profit = 25% on Sales
Gross profit=6,40,000×25/100=1,60,000
Cost of Goods Sold = Total Sales − Gross Profit
Cost of Goods Sold = 6,40,000 – 1,60,000
Cost of Goods Sold = 4,80,000
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Average Inventory |
=
Opening Inventory + Closing Inventory /2 =58,000+62,000/2=60,000 |
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|
|
|
Inventory turnover ratio |
=
Cost of Goods sold / Average Inventory |
|
|
=4,80,000/60,000 |
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=8
Times |
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