Answer:
C. 10.06.
Explanation:
* Assuming 8,000 and 9,000 is given in dollar terms rahter than a units.
Average raw material Inventory = ( Beginning raw materials inventory + Ending raw materials inventory ) / 2
Average raw material Inventory = ( 8,000 + 9,000) / 2
Average raw material Inventory = 8,500
Raw Material Inventory Turnover = Raw material Inventory used / Average raw material Inventory
Raw Material Inventory Turnover = $85,500 / 8,500
Raw Material Inventory Turnover = 10.06
Answer:
C. 10.06
Explanation:
Raw materials inventory turnover is the ratio of the cost of raw material used to the average raw material for the period.
Given;
Raw materials used = $85,500
Beginning raw materials inventory 8,000
Ending raw materials inventory 9,000
Raw materials inventory turnover = $85,500/($8,000 + $9,000)/2
= $85,500 × 2/$17000
= 10.05882353
