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raw material turnover

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:

a. 1/17
b. About 1
c. 5.67
d. 17

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Answer: d.

Raw material turnover is computed by dividing ...

Solution Summary

This job examines raw material turnover computation.