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

Question

Based on information , inventory turnover is

A-40%

B-67%

C-80%

D-75%

Vipin Pavithran · Answer

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 · Answer

COGS =200,000

Average Inventory =300,000

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

(B) is the Correct Ans