200000 is the cost of revenue from operations. Inventory turnover 8 ti...
**Calculation of Opening and Closing Inventory**
To calculate the opening and closing inventory, we need to use the given information about the cost of revenue from operations, inventory turnover, and the relationship between the beginning and ending inventory.
**Given information:**
- Cost of revenue from operations = $200,000
- Inventory turnover = 8 times
- Inventory at the beginning = 1.5 times more than the inventory at the end
**Step 1: Calculation of Cost of Goods Sold (COGS)**
Inventory turnover is a measure of how quickly a company sells its inventory. It is calculated by dividing the cost of goods sold (COGS) by the average inventory value.
COGS = Cost of Revenue from Operations
Inventory Turnover = COGS / Average Inventory
We can rearrange the formula to calculate the COGS:
COGS = Inventory Turnover * Average Inventory
**Step 2: Calculation of Average Inventory**
Since we are given the inventory turnover and cost of revenue from operations, we can substitute these values into the formula to solve for the average inventory.
COGS = Inventory Turnover * Average Inventory
$200,000 = 8 * Average Inventory
Average Inventory = $200,000 / 8
Average Inventory = $25,000
**Step 3: Calculation of Opening and Closing Inventory**
We know that the inventory at the beginning is 1.5 times more than the inventory at the end. Let's assume the inventory at the end is 'x'.
Inventory at the beginning = 1.5 * x
To calculate the opening and closing inventory, we need to determine the specific values for the inventory at the beginning and end.
**Step 4: Calculation of Opening Inventory**
Opening Inventory = Inventory at the beginning - COGS
Opening Inventory = 1.5 * x - $25,000
**Step 5: Calculation of Closing Inventory**
Closing Inventory = Inventory at the end
Closing Inventory = x
By solving these equations simultaneously, we can determine the values of opening and closing inventory.
However, without specific values or additional information, it is not possible to provide the exact numerical values for the opening and closing inventory. The calculations above provide the method to determine these values once the specific values for inventory at the end and the relationship between the beginning and ending inventory are known.
200000 is the cost of revenue from operations. Inventory turnover 8 ti...
Let opening stock = x
closing stock = x(1.5)
cost of good sold =200,000
Inventory turn over Ratio =8Times
Inventory turn over Ratio= cost of good sold /Average Inventory
8=200,000/x/2+1.5x/2
8=200,000/2.5x/2
8=400,000/2.5x
20x=400,000
x=400,000/20
x=20,000
opening stock x=20,000
closing stock=x(1.5)
closing stock=20,000*1.5
closing stock=30,000
Answer opening stock=20,000
closing stock=30,000