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) 6.76.
B) 6.02.
C) 54.0.
D) 60.6.
E) 6.37.

Question

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) 6.76.
B) 6.02.
C) 54.0.
D) 60.6.
E) 6.37.

Quizplus · Accepted Answer

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

Using the Information Below, Compute the Raw Materials Inventory Turnover