Using the information below, compute the raw materials inventory turnover:
A) 11.02.
B) 382.02.
C) 10.06.
D) 9.94.
E) 9.50.

Name: Using the information below, compute the raw materials inventory turnover: A) 11.02. B) 382.02. C) 10.06. D) 9.94. E) 9.50.
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Question

Using the information below, compute the raw materials inventory turnover: 
A) 11.02. 
B) 382.02. 
C) 10.06. 
D) 9.94. 
E) 9.50.

Quizplus · Accepted Answer

Raw materials inventory turnover = Cost of goods sold / Average raw materials inventory
Cost of goods sold = $500,000
Average raw materials inventory = ($76,000 + $95,000) / 2 = $85,500
Raw materials inventory turnover = $500,000 / $85,500 = 10.06

Using the Information Below, Compute the Raw Materials Inventory Turnover