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Revenue 600000 gross margin 400000 begining balance of inventory 400000 ending balance of inventory 200000

Based on information , inventory turnover is A-40% B-67% C-80% D-75%

Accounting Cost Accounting Financial Accounting CMA Costing
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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/12
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Vipin Pavithran
by Vipin Pavithran , Certified Public Accountant , Ford Motors Pvt Ltd

Revenue - Gross margin= Cogs 600,000-400,000=2,00,000 Average inventory= opening +closing stock/2300,000=400,000+200,000/2 Inventory Turnover = Cogs / Average inventory .667=200,000/300,000

Muhammad Ramzan Tufail ACCA
by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

COGS =200,000

 

Average Inventory =300,000

 

So,200,000 /300,000 *100 = 66.67 %

 

(B) is the Correct Ans

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