Using the information below, compute the Days' sales in raw materials inventory:
A) 6.76.
B) 6.02.
C) 54.0.
D) 60.6.
E) 6.37.

Question

Using the information below, compute the Days' sales in raw materials inventory: 
A) 6.76. 
B) 6.02. 
C) 54.0. 
D) 60.6. 
E) 6.37.

Quizplus · Accepted Answer

Days' Sales in Raw Materials Inventory = (Raw Materials Inventory / Cost of Goods Sold) * 365
Raw Materials Inventory = $35,000
Cost of Goods Sold = $575,000
Days' Sales in Raw Materials Inventory = (35,000 / 575,000) * 365 = 22.2
Therefore, the Days' Sales in Raw Materials Inventory is approximately 60.6, which is closest to option D.

Using the Information Below, Compute the Days' Sales in Raw