FROBLEM 21. The following figures are taken from the records of a Co. for the year 2006. The valuation of inventory is $. 2.00 per kg. Closing Stock 400 kgs. 2,400 kgs. Purchases Opening Stock 1,400 kgs. 2,000 kgs. Material X 23,000 kgs. 3,600 kgs. Material Y Calculate the material turnover ratio of thè above two materials and express in number of days the average inventory is held. Also determine which of the two materials is fast moving.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
PROBLEM 21. The following figures are taken from the records of a Co. for the year 2006. The
valuation of inventory is $. 2.00 per kg.
Opening Stock
1,400 kgs.
2,000 kgs.
Closing Stock
400 kgs.
2,400 kgs.
Purchases
Material X
23,000 kgs.
3,600 kgs.
Material Y
Calculate the material turnover ratio of thè above two materials and express in number of days the
average inventory is held. Also determine which of the two materials is fast moving.
Transcribed Image Text:PROBLEM 21. The following figures are taken from the records of a Co. for the year 2006. The valuation of inventory is $. 2.00 per kg. Opening Stock 1,400 kgs. 2,000 kgs. Closing Stock 400 kgs. 2,400 kgs. Purchases Material X 23,000 kgs. 3,600 kgs. Material Y Calculate the material turnover ratio of thè above two materials and express in number of days the average inventory is held. Also determine which of the two materials is fast moving.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Balance Sheet Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education