Question 22 Q 22 Opening Inventory Rs 1,20,000; Closing Inventory 1 5 times of - Accountancy - Accounting Ratios

Question

Question 22

Q 22 Opening Inventory Rs 1,20,000; Closing Inventory 1 5 times of
opening inventory; Inventory
Turnover Ratio 6 times; Selling price 33 1 3 % above cost Calculate
the Gross Profit ratio

Neha Chopra · Accepted Answer

Dear Student,

Opening Inventory is Rs 1,20,000 Closing Inventory = 1
5×1,20,000 = 1,80,000

Inventory Turnover Ratio =
6 Times = Cost of Goods SoldAverage Inventoryi
e
 6 times = Cost of Goods sold1,20,000+1,80,0002
So Cost of Goods sold = Rs 9,00,000
Now selling price is 33 33% above cost i e Selling price =
9,00,000×133 13% =12,00,000
So, Gross Profit = Rs 3,00,000 (12,00,000-9,00,000)
Therefor Gross Profit Ratio =
3,00,0009,00,000×100= 3313%
Regards,

Question.22 Q.22. Opening Inventory Rs. 1,20,000; Closing Inventory 1.5 times of opening inventory; Inventory Turnover Ratio 6 times; Selling price 33 1 3 % above cost. Calculate the Gross Profit ratio.

Question.22

Q.22. Opening Inventory Rs. 1,20,000; Closing Inventory 1.5 times of opening inventory; Inventory
Turnover Ratio 6 times; Selling price 33 $\frac{1}{3}$ % above cost. Calculate the Gross Profit ratio.