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प्रश्न
From the given information calculate the inventory turnover ratio and inventory conversion period (in months) of Devi Ltd.
| Particulars | Rs. |
| Revenue from operations | 12,00,000 |
| Inventory at the beginning of the year | 1,70,000 |
| Inventory at the end of the year | 1,30,000 |
| Purchase made during the year | 6,90,000 |
| Carriage inwards | 20,000 |
उत्तर
Inventory Turnover Ratio = `"cost of revenue from operations"/"Average Inventory"`
Cost of revenue from operations = Purchase of stock + change in inventories of finished goods operations + Direct Expenses.
= Rs. 6,90,000
Average Inventory = `("Opening Inventory + Closing inventory")/2`
`= (1,70,000 + 1,30,000)/2`
= Rs. 1,50,000
Change in inventory = Opening inventory – Closing inventory
= 1,70,000 – 1,30,000
= Rs. 40,000
Cost of revenue from operation
= 6,90,000 + 40,000 + 20,000
= Rs. 7,50,000
Inventory Turnover Ratio = `750000/150000` = 5 times
Inventory conversion period = `"No. of. months in a year"/"Inventory turnover rates"`
`= 12/5` = 2.4 Months
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