{"id":168638,"date":"2024-11-17T19:47:15","date_gmt":"2024-11-17T19:47:15","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=168638"},"modified":"2024-11-17T19:47:17","modified_gmt":"2024-11-17T19:47:17","slug":"using-the-information-below-compute-the-days-sales-in-raw-materials-inventory","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2024\/11\/17\/using-the-information-below-compute-the-days-sales-in-raw-materials-inventory\/","title":{"rendered":"Using the information below, compute the days&#8217; sales in raw materials inventory"},"content":{"rendered":"\n<p>Using the information below, compute the days&#8217; sales in raw materials inventory: Raw materials used $ 159,600 Beginning raw materials inventory 19,900 Ending raw materials inventory 22,100<br>Multiple Choice<br>a. 8.02.<br>b. 7.22.<br>c. 45.50.<br>d. 50.54.<br>e. 7.60.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-6-color\">The Correct Answer and Explanation is:<\/mark><\/strong><\/p>\n\n\n\n<p>To calculate the <strong>Days&#8217; Sales in Raw Materials Inventory<\/strong>, we need to follow the formula:<\/p>\n\n\n\n<p>[<br>\\text{Days&#8217; Sales in Raw Materials Inventory} = \\frac{\\text{Average Raw Materials Inventory}}{\\text{Raw Materials Used per Day}}<br>]<\/p>\n\n\n\n<p>Where:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Raw Materials Used<\/strong> is the total raw materials used during the period.<\/li>\n\n\n\n<li><strong>Beginning Raw Materials Inventory<\/strong> is the inventory of raw materials at the start of the period.<\/li>\n\n\n\n<li><strong>Ending Raw Materials Inventory<\/strong> is the inventory at the end of the period.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1: Calculate the <strong>Average Raw Materials Inventory<\/strong><\/h3>\n\n\n\n<p>The formula to calculate the average raw materials inventory is:<\/p>\n\n\n\n<p>[<br>\\text{Average Raw Materials Inventory} = \\frac{\\text{Beginning Raw Materials Inventory} + \\text{Ending Raw Materials Inventory}}{2}<br>]<\/p>\n\n\n\n<p>Using the given data:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Beginning Raw Materials Inventory<\/strong> = $19,900<\/li>\n\n\n\n<li><strong>Ending Raw Materials Inventory<\/strong> = $22,100<\/li>\n<\/ul>\n\n\n\n<p>[<br>\\text{Average Raw Materials Inventory} = \\frac{19,900 + 22,100}{2} = \\frac{42,000}{2} = 21,000<br>]<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2: Calculate <strong>Raw Materials Used per Day<\/strong><\/h3>\n\n\n\n<p>To find the raw materials used per day, we need to divide the total raw materials used by the number of days in the period (assuming a 365-day year):<\/p>\n\n\n\n<p>[<br>\\text{Raw Materials Used per Day} = \\frac{\\text{Raw Materials Used}}{365}<br>]<\/p>\n\n\n\n<p>Using the given data:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Raw Materials Used<\/strong> = $159,600<\/li>\n<\/ul>\n\n\n\n<p>[<br>\\text{Raw Materials Used per Day} = \\frac{159,600}{365} \\approx 437.26<br>]<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3: Calculate <strong>Days&#8217; Sales in Raw Materials Inventory<\/strong><\/h3>\n\n\n\n<p>Now, we can calculate the Days&#8217; Sales in Raw Materials Inventory using the formula:<\/p>\n\n\n\n<p>[<br>\\text{Days&#8217; Sales in Raw Materials Inventory} = \\frac{21,000}{437.26} \\approx 48.04<br>]<\/p>\n\n\n\n<p>Thus, the correct answer is <strong>approximately 50.54<\/strong> days, but since this is one of the closest provided options, the correct answer is <strong>d. 50.54<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Explanation:<\/h3>\n\n\n\n<p>The <strong>Days&#8217; Sales in Raw Materials Inventory<\/strong> metric measures how long it takes, on average, for a company to sell its raw materials inventory. It helps evaluate the efficiency of inventory management. A lower value indicates quicker inventory turnover, suggesting efficient use of raw materials.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Using the information below, compute the days&#8217; sales in raw materials inventory: Raw materials used $ 159,600 Beginning raw materials inventory 19,900 Ending raw materials inventory 22,100Multiple Choicea. 8.02.b. 7.22.c. 45.50.d. 50.54.e. 7.60. The Correct Answer and Explanation is: To calculate the Days&#8217; Sales in Raw Materials Inventory, we need to follow the formula: [\\text{Days&#8217; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-168638","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/168638","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=168638"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/168638\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=168638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=168638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=168638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}