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Opening Inventory ₹1,00,000; Closing Inventory ₹ 1,50,000; Purchases ₹ 6,00,000;Carriage ₹ 25,000; Wages ₹ 2,00,000. Inventory Turnover Ratio will be:
  • a)
    6.6 Times
  • b)
    7.4 Times
  • c)
    7 Times
  • d)
    6.2 Times
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Opening Inventory 1,00,000; Closing Inventory 1,50,000; Purchases 6,00...
Calculation of Inventory Turnover Ratio

Opening Inventory = 1,00,000
Closing Inventory = 1,50,000
Purchases = 6,00,000
Carriage = 25,000
Wages = 2,00,000

Cost of Goods Sold (COGS) = Opening Inventory + Purchases + Carriage + Wages - Closing Inventory
COGS = 1,00,000 + 6,00,000 + 25,000 + 2,00,000 - 1,50,000
COGS = 7,75,000

Inventory Turnover Ratio = COGS / Average Inventory
Average Inventory = (Opening Inventory + Closing Inventory) / 2
Average Inventory = (1,00,000 + 1,50,000) / 2
Average Inventory = 1,25,000

Inventory Turnover Ratio = 7,75,000 / 1,25,000
Inventory Turnover Ratio = 6.2 Times

Therefore, the Inventory Turnover Ratio is 6.2 Times.
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Community Answer
Opening Inventory 1,00,000; Closing Inventory 1,50,000; Purchases 6,00...
Inventory Turnover Ratio = 
= 6.2 times
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Opening Inventory 1,00,000; Closing Inventory 1,50,000; Purchases 6,00,000;Carriage 25,000; Wages 2,00,000. Inventory Turnover Ratio will be:a)6.6 Timesb)7.4 Timesc)7 Timesd)6.2 TimesCorrect answer is option 'D'. Can you explain this answer?
Question Description
Opening Inventory 1,00,000; Closing Inventory 1,50,000; Purchases 6,00,000;Carriage 25,000; Wages 2,00,000. Inventory Turnover Ratio will be:a)6.6 Timesb)7.4 Timesc)7 Timesd)6.2 TimesCorrect answer is option 'D'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about Opening Inventory 1,00,000; Closing Inventory 1,50,000; Purchases 6,00,000;Carriage 25,000; Wages 2,00,000. Inventory Turnover Ratio will be:a)6.6 Timesb)7.4 Timesc)7 Timesd)6.2 TimesCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Opening Inventory 1,00,000; Closing Inventory 1,50,000; Purchases 6,00,000;Carriage 25,000; Wages 2,00,000. Inventory Turnover Ratio will be:a)6.6 Timesb)7.4 Timesc)7 Timesd)6.2 TimesCorrect answer is option 'D'. Can you explain this answer?.
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