Rs 200000 is cost of revenue from operation (cost of goods sold ), inventory turnover ratio 8 times, inventory in the beginning is 1.5 times more than the inventory at the end calculate values of opening and closing inventory.

Explanation

Inventory Turnover Ratio =`("Cost of Revenue from opertions(Cost of Goods Sold)")/("Average Inventory")`
`8=(Rs 200000)/("Average Inventroy")`
Average Inventory=Rs 25000
Average Inventory=`("opening Inventory + Closing Inventory")/(2)`
Let the closing Inventory be x, So , opening Inventroy =x+1.5 x
Hence, `(x+x+1.5x)/(2)`=Rs 25000
3.5x =Rs 50000
`x=(Rs 50000)/(3.5)=Rs 14286 ("Closing Inventory")`
Thus Opening Inventory=Rs 14286 + 1.5 Times of Rs 14286
`=Rs 35715(i.e, Rs 14286xx2.5)`