Exhibit 20-1 The following information is for Saratoga Company:
Refer to Exhibit 20-1. Determine the raw materials inventory turnover (rounded).

Question

Exhibit 20-1 The following information is for Saratoga Company:
 Refer to Exhibit 20-1. Determine the raw materials inventory turnover (rounded).

Quizplus · Accepted Answer

Raw materials inventory turnover = Cost of goods sold / Average raw materials inventory
= $2,500,000 / (($250,000 + $300,000) / 2)
= $2,500,000 / $275,000
= 9.09
Rounded to the nearest whole number, the answer is 12.9.

Exhibit 20-1 the Following Information Is for Saratoga Company