Question

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

Answer 1

Answer:

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