If average inventory is `1,25,000 and closing inventory is `10,000 less than opening inventory then the value of closing inventory will be
A)1,35,000
B)1,15,000
C)1,30,000
D)1,20,000

Question

Quizplus · Accepted Answer

The average inventory is calculated as (Opening Inventory + Closing Inventory) / 2. Given that the average inventory is 1,25,000, we can set up the equation: (Opening Inventory + Closing Inventory) / 2 = 1,25,000. Also, Closing Inventory = Opening Inventory - 10,000. Solving these equations, we find the Closing Inventory to be 1,20,000.

If Average Inventory Is `1,25,000 and Closing Inventory Is `10,000