Equation 8-4 Trm = Purchasing costs / RM. A toy producer's average inventory is $100,000 in raw plastic, $150,000 in partially produced toys, and $50,000 in finished toys. If the cost of purchased materials and purchasing overhead is $1,700,000 per year, raw material turnover is:
b. About 1
Raw material turnover is computed by dividing ...
This job examines raw material turnover computation.