Topeka Manufacturing reported sales of $750,000 during the current year. The company used $300,000 of raw materials to produce the units that were sold. Its raw materials inventory totaled $10,000 at the beginning of the year and $14,000 at the end of the year. What is the company's raw materials inventory turnover

Question

Prince Wheeler

Business

18 December, 17:08

Topeka Manufacturing reported sales of $750,000 during the current year. The company used $300,000 of raw materials to produce the units that were sold. Its raw materials inventory totaled $10,000 at the beginning of the year and $14,000 at the end of the year. What is the company's raw materials inventory turnover

+4

Answers (1)

Know the Answer?

Ayden Briggs · Answer 1

25.0

Explanation:

Raw materials inventory turnover = raw materials used : average raw materials inventory

($10,000 + $14,000) : 2)

=$24,000:2 = $12,000

$300,000 : $12,000 = $25.0

Therefore the company's raw materials inventory turnover is $25.0