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Current Year 1 Year Ago 2 Years Ago Raw materials inventory, ending Raw materials used $ 169,500 2,160,000 $ 190,500 2,522,000 $ 197,500 2,765,000 Required: 1. Compute raw materials inventory turnover for the most recent two years. 2. Is the current year change in raw materials inventory turnover ratio favorable or unfavorable? 3. Compute days' sales in raw materials inventory for the current year.

Current Year 1 Year Ago 2 Years Ago Raw materials inventory, ending Raw materials used $ 169,500 2,160,000 $ 190,500 2,522,000 $ 197,500 2,765,000 Required: 1. Compute raw materials inventory turnover for the most recent two years. 2. Is the current year change in raw materials inventory turnover ratio favorable or unfavorable? 3. Compute days' sales in raw materials inventory for the current year.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A manufacturing company reports the following information. Raw materials inventory, ending Raw materials used Required: Current Year $ 169,500 2,160,000 1 Year Ago 2 Years Ago $ 190,500 2,522,000 $ 197,500 2,765,000 1. Compute raw materials inventory turnover for the most recent two years. 2. Is the current year change in raw materials inventory turnover ratio favorable or unfavorable? 3. Compute days' sales in raw materials inventory for the current year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute days' sales in raw materials inventory for the current year. Note: Round your answer to 1 decimal place. Days' sales in raw materials inventory for current year < Required 2 Required 3 >
Transcribed Image Text:A manufacturing company reports the following information. Raw materials inventory, ending Raw materials used Required: Current Year $ 169,500 2,160,000 1 Year Ago 2 Years Ago $ 190,500 2,522,000 $ 197,500 2,765,000 1. Compute raw materials inventory turnover for the most recent two years. 2. Is the current year change in raw materials inventory turnover ratio favorable or unfavorable? 3. Compute days' sales in raw materials inventory for the current year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute days' sales in raw materials inventory for the current year. Note: Round your answer to 1 decimal place. Days' sales in raw materials inventory for current year < Required 2 Required 3 >
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