need help in solving raw materials inventory turnover and day\'s sales inventory

Question

need help in solving raw materials inventory turnover and day's sales inventory

14-14 Raw materials inventory management LO A1 tfé reports beginning raw materials inventory of 3,890 and ending raw erials inventory of 3,775 (both mbers in millions of Swiss francs). Nestlé purchased 14,460 and used 75 (both amounts in millions Swiss francs) of raw materials during the year. Compute raw materialsintory turnover and the number days' sales in raw materials inventory. (Enter your answers in millions Swiss francs.) Raw Materials Inventory tuover I Choose Denominator: Raw Material rnover Choose Numerator Raw materials used entoryRaw materials invéff 18,350 [Average raw mate 14,575 Days' Sales In Inventory I Choose Denominator:xDaysDays' Sales In Inventory - Days' sales in inventory 97.42 Choose Numerator Ending raw materias inventory Raw materials used x 365 14,575x365 3,890/

Explanation / Answer

Average raw material inventory = (Begining raw material inventory + Ending raw material inventory)/2

= ( 3,890 + 3,775 )/2

= 3,832.5 million swiss francs

Raw materials inventory turnover = Raw materials used/Average raw materials inventory

= 14,575/3,832.5

= 3.80

Days' sales in inventory = (Average raw material inventory/Raw materials used) x 365

= (3,832.5/14,575) x 365

= 96

=

  

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