Chapter 1, Problem 14QS

To determine

Concept introduction:

Inventory Turnover Ratio: Inventory Turnover Ratio measures the efficiency of the company in converting its inventory into sales. It is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows:

$InventoryTurnoverRatio=\frac{Costofgoodssold}{Averageinventory}$

Note: Average inventory is calculated with the help of following formula:

$Averageinventory=\frac{(Beginninginventory+Endinginventory)}{2}$

To calculate:

The Raw Material Inventory Turnover and Days Sales in raw Material inventory.