
Concept introduction:
Days’ sales in work in process inventory:
Days sales in work in process inventory is a measurement of efficiency. This shows the number of days for which inventory is hold by the company. In other words, we can say that it shows relationship between work in process inventory and cost of goods sold.
Requirement 1:
Days sales in work in process inventory for the current year.
Concept introduction:
Days’ sales in work in process inventory:
Days’ sales in work in process inventory is a measurement of efficiency. This shows the number of days for which inventory is hold by the company. In other words we can say that it shows relationship between work in process inventory and cost of goods sold.
Requirement 2:
Days’ sales in work in process inventory for the prior year.
Concept introduction:
Days’ sales in work in process inventory:
Days’ sales in work in process inventory is a measurement of efficiency. This shows the number of days for which inventory is hold by the company. In other words we can say that it shows relationship between work in process inventory and cost of goods sold.
Requirement 3:
Did days’ sales in work in process inventory increase or decrease from the prior year?

Want to see the full answer?
Check out a sample textbook solution
Chapter C Solutions
Managerial Accounting
- Patrick Lewis Manufacturing Ltd. has been using an overhead rate of Rs.8.20 per machine hour. During the year, overheads of Rs. 310,000 were incurred, and 50,000 machine hours were worked. Therefore, overheads were: A. Under-applied by Rs. 100,000 B. Over-applied by Rs. 70,400 C. Under-applied by Rs. 70,400. Over-applied by Rs. 100,000arrow_forwardSuppose that the allowance factor for a job is 0.12, and the normal time is 6.5 hours. What is the standard time?arrow_forwardNeed help with this accounting questionsarrow_forward
- Elle Corporation has the following standards for its direct materials: 1. Standard Cost: $3.80 per pound 2. Standard Quantity: 6.00 pounds per product. During the most recent month, the company purchased and used 33,900 pounds of material in manufacturing 5,600 products, at a total cost of $131,900. Compute the materials quantity variance.arrow_forwardHelparrow_forwardCan you help me with accounting questionsarrow_forward
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
