Following information is given : Total sales : ₹24,00,000 Inventory turnover ratio : 4.80 times on basis of cost of goods sold Gross profit ratio : 25% on cost of goods sold Closing inventory is ₹60,000 more than opening

CS Executive · Cost and Management Accounting · PYQS · December 2016
Following information is given : Total sales : ₹24,00,000 Inventory turnover ratio : 4.80 times on basis of cost of goods sold Gross profit ratio : 25% on cost of goods sold Closing inventory is ₹60,000 more than opening inventory. The amount of opening stock and purchases respectively will be —
(A) ₹3,70,000 and ₹19,80,000
(B) ₹3,45,000 and ₹18,60,000
(C) ₹3,75,000 and ₹19,20,000
(D) None of the above.

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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