What will be the closing inventory of the company if its opening inventory is 10% of the cost of revenue from operations (₹6,40,000) and the closing inventory is 4 times of opening inventory?

₹2,56,000

The correct answer is option 2- ₹2,56,000.

Opening inventory is 10% of the cost of revenue from operations (₹6,40,000)
Opening inventory = 6,40,000 X 10/100
                              = ₹64,000

Closing inventory is 4 times of opening inventory
Closing inventory = 64,000 X 4
                            = ₹2,56,000