Question 66:
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 |
|
Inventory tunover ratio |
= Cost of goods sold / Average Inventory =5,00,000/1,25,000 =4 times |
Question 67:
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
|
Average Stock |
=
Opening Stock + Closing Stock/2 =50,000+20,000/2=35,000 |
|
|
|
|
Stock turnover ratio |
=
Cost of Goods sold / Average Stock |
|
|
=4,20,000/35,000 |
|
|
=12
Times |
Question
68
From the following information, calculate Inventory Turnover Ratio:
|
Opening Inventory |
` 2,00,000 |
Closing Inventory |
` 60,000 |
|
Purchases |
` 4,60,000 |
Wages |
` 30,000 |
|
Carriage Inwards |
` 20,000 |
Freight Outwards |
` 37,500 |
Answers:
Inventory turnover ratio= Cost of revenue from operation/ average inventory
Inventory turnover ratio= 6,50,000 / 1,30,000 = 5 Times
|
Cost of revenue from operations ( cost of goods sold) |
= opening inventory + purchases + carriage inward + wages - closing inventory |
|
|
= 2,00,000 + 4,60,000 + 20,000 + 30,000-60,000 |
|
|
= 6,50,000 |
|
Average inventory |
= opening inventory + closing inventory / 2 |
|
|
= 2,00,000 + 60,000 / 2 |
|
|
= 2,60,000 / 2 |
|
|
= 1,30,000 |
Question 69:
:
Calculate Inventory Turnover Ratio from the following:
|
|
` |
|
Opening
Inventory |
58,000 |
|
Closing
Inventory |
62,000 |
|
Revenue
from Operations, i.e., Sales |
6,40,000 |
|
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
|
Average Inventory |
=
Opening Inventory + Closing Inventory /2 =58,000+62,000/2=60,000 |
|
|
|
|
Inventory turnover ratio |
=
Cost of Goods sold / Average Inventory |
|
|
=4,80,000/60,000 |
|
|
=8
Times |
Question
70:
From the following information, calculate Inventory Turnover Ratio:
|
|
` |
|
Revenue
from Operations |
16,00,000 |
|
Average
Inventory |
2,20,000 |
|
Gross
Loss Ratio 5% |
|
Answer:
|
Cost of Revenue from Operations |
= Revenue from Operation+Gross Loss = 16,00,000+80,000 = ` 16,80,000 |
|
Inventory Turnover Ratio |
=
Cost of Revenue from Operations/Average Inventory =
16,80,000/2,20,000 =
7.64 Times |
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Ts Grewal Solution 2022-2023
Class 12 / Volume – 3
Chapter 4 – Accounting Ratios
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