Topeka Manufacturing reported sales of $750,000 during the current year. The company used $300,000 of raw materials to produce the units that were sold. Its raw materials inventory totaled $10,000 at the beginning of the year and $14,000 at the end of the year. What is the company’s days’ sales in raw materials inventory at the end of the current year?

Days sales in raw materials inventory = 17.03 days

Explanation:

Given that;

Sales = $750,000

Raw materials used = $300,000

Ending raw materials inventory = $14,000

Beginning inventory = $10,000

Days sales in raw materials inventory =

Ending raw materials inventory ÷ raw materials used × 365

= ($14,000 ÷ $300,000) × 365

= 17.03 days

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o