Diane Singer Has Just Been Assigned as the Senior Accountant

Diane Singer has just been assigned as the senior accountant on the audit of Pottery Manufacturing Company.Diane currently is planning the audit and has been considering what procedures to perform in examining the company's inventories of raw materials,work-in-process,and finished goods.She has determined that the calculation of certain ratios and other financial analysis techniques will prove useful to her in deciding how to approach the audit of the company's inventory accounts.
Identify the ratios to be calculated and the factors to be considered in Diane's analysis of the company's inventory accounts.