3M Co. reports beginning raw materials inventory of $930 million and ending raw materials inventory of $880 million. 3M purchased $3,956 million of raw materials and used $4,006 million of raw materials during the year. Compute raw materials inventory turnover and the number of days' sales in raw materials inventory. (Use 365 days per year. Enter your answers in millions.)
Answers
Answer:
raw material inventory turnover = 4.42
number of days sale in raw materials inventory = 21.97
Explanation:
given data
beginning inventory = $930 million
ending inventory = $880 million
purchased raw materials = $3,956 million
used raw materials = $4,006 million
solution
we get here first raw material inventory for turnover that is
raw material inventory turnover = ..............1
here average raw material inventory =
average raw material inventory = $905 million
so from equation 1
raw material inventory turnover =
raw material inventory turnover = 4.42
and
now number of days' sales in raw materials inventory will be as
number of days sale in raw materials inventory = × 365 .............2
put here value
number of days sale in raw materials inventory = × 365
number of days sale in raw materials inventory = 21.97
Related Questions
Which one of the following statements is TRUE?(A) One tool of corporate governance is choosing a good investment banker.(B) One tool of corporate governance is how the company's charter affects the likelihood of a takeover.(C) One tool of corporate governance is a company's tax avoidance strategy. (D) Creditors have a claim on a firm's earning stream through the dividend payments they receive.(E) One tool of corporate governance is stock repurchases.
John's lifelong dream is to own his own fishing boat to use in his retirement. John has recently come into an inheritance of $500,000. He estimates that the boat he wants will cost $400,000 when he retires in 5 years. How much of his inheritance must he invest at an annual rate of 10% (compounded annually) to buy the boat at retirement?
R. C. Barker makes purchasing decisions for his company. One product that he buys costs $50 per unit when the order quantity is less than 500. When the quantity ordered is 500 or more, the price per unit drops to $48. The ordering cost is $30 per order and the annual demand is 7,500 units. The holding cost is 10 percent of the purchase cost. If R. C. wishes to minimize his total annual inventory costs, he must evaluate the total cost for two possible order quantities. What are these two possible quantities?a. 300b. 306c. 500d. 200e. None of the above
Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October: Percent Completed Units Materials Conversion Work in process, October 1 45,000 90 % 65 % Work in process, October 31 25,000 71 % 50 % The department started 386,000 units into production during the month and transferred 406,000 completed units to the next department. Required: Compute the equivalent units of production for October.
yes or no?
Answers
Answer:
The Answer is gonna be Yes
Answers
Answer:
She should subtract the lowest unit of the product produced at a particular time of the day from the highest unit of the product produced at another time of the day
Explanation:
Range is calculated by subtracting the lowest output at a given time of the day from the highest output at another time of the day
4 Pays insurance in advance for 3 months, $1,020.
16 Receives $780 from clients for services rendered.
27 Pays the secretary $520 salary.
Journalize the transactions.
Answers
Answer:Please see answers in explanation column
Explanation:
Journal entry for Novak Corp during August
Date Account title Debit Credit
Aug 1 Cash $10,950
Common stock $10,950
Aug 4 Prepaid Insurance $1,020.
Cash $1,020.
Aug 16 Cash $780
Service revenue $780
Aug 27 Salaries expense $520
Cash $520
Final answer:
To journalize the August transactions for Novak Corp., Debit and Credit the appropriate accounts based on the nature and amount of each transaction. These are done on 1st, 4th, 16th, and 27th of August according to the details provided.
Explanation:
The question is asking for the journalization of the transactions of the Novak Corp. during August. Journalizing transactions involves keeping a record of the financial activities, in the form of debit and credit, in a journal or logbook. Here is how you would journalize the transactions:
Aug. 1: Debit Cash account $10,950. Credit Common Stock account $10,950.
Aug. 4: Debit Insurance Expense account $1,020. Credit Cash account $1,020.
Aug. 16: Debit Cash account $780. Credit Service Revenue account $780.
Aug. 27: Debit Salary Expense account $520. Credit Cash account $520.
Learn more about Journalizing Transactions here:
#SPJ3
Answers
Answer:
The weight of equity in to be use to calculate the firm's WACC is 0.48 or 48%
Explanation:
The weight of equity to be used in firm's WACC computation is market value of equity divided by the sum of market value of equity ,preferred stock and bonds.
Market value of equity=44,000*$32 =$1,408,000.00
Market value of preferred stock=7,500*$92 =$690,000
Market value of bonds=$825,000*$989/$1000=$815,925.00
Sum of market values =$ 2,913,925.00
Weight of equity=market value of equity/Sum of market values=$1,408,000.00/$2,913,925.00= 0.48 =48%
Answers
Answer:
$60,000 increase
Explanation:
The company's additional earnings before interest and taxes (EBIT) are subjected to a 40% tax rate. The company's EBIT is:
The change in income is determined as the EBIT minus taxes and interest expense:
Therefore, Garfield Industries experienced a $60,000 increase in its income as a result of the expansion.
Final answer:
The net income will increase by $100,000 as a result of the expansion.
Explanation:
To calculate the net income increase or decrease, you need to subtract the increased costs of goods sold, depreciation expenses, and interest expense from the increased sales. The tax rate of 40 percent should be applied to the resulting amount to calculate the net income. So, the net income increase or decrease can be calculated as follows:
- Increased sales: $1,000,000
- Increased costs of goods sold: $700,000
- Depreciation expenses increase: $50,000
- Interest expense increase: $150,000
Net income increase or decrease = (Increased sales - Increased costs of goods sold - Depreciation expenses increase - Interest expense increase) * Tax rate
= ($1,000,000 - $700,000 - $50,000 - $150,000) * 0.40
= $100,000
Therefore, the net income will increase by $100,000 as a result of the expansion.
Answers
Answer:
Instructions are below.
Explanation:
Giving the following information:
Selling price= $123
Units sold= 6,100
Variable costs per unit:
Direct materials $45
Direct labor $30
Variable manufacturing overhead $1
Variable selling and administrative $8
Fixed costs:
Fixed manufacturing overhead $140,800
Fixed selling and administrative $91,500
First, we need to calculate the total variable cost per unit:
Variable cost per unit= 45 + 30 + 1 + 8= $84
Income statement:
Sales= 6,100*123= 750,300
Total variable cost= 6,100*84= (512,400)
Contribution margin= 237,900
Fixed manufacturing overhead= (140,800)
Fixed selling and administrative= (91,500)
Net operating income= 5,600