Using the information below, compute the raw materials inventory turnover: $\begin{array}{lr}
\text { Raw Materials Used } & \$ 121,600 \
\
\text { Beginning Raw Materials Inventory } & 18,000 \
\text { Ending Raw Materials Inventory } & 20,200
\end{array}$
A) 60.6.
B) 54.0.
C) 6.76.
D) 6.37.
E) 6.02.

Question

Quizplus · Accepted Answer

The raw materials inventory turnover is calculated as Raw Materials Used divided by the average inventory. Average inventory = (Beginning Inventory + Ending Inventory) / 2 = (18,000 + 20,200) / 2 = 19,100. Turnover = 121,600 / 19,100 = 6.37.

Using the Information Below, Compute the Raw Materials Inventory Turnover