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?
Answer & explanation
Correct answer: option 2
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