On the basis of information given below the closing Inventory will be:
Opening inventory 20,000
Average inventory 40,000
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹60,000.
Opening inventory 20,000
Average inventory 40,000
Average inventory = (Opening inventory + Closing inventory)/2
40,000 = (20,000 + Closing inventory)/2
80,000 = 20,000 + Closing inventory
Closing inventory = 80,000 - 20,000
= 60,000