Average stock of raw material consumption per annum are Rs.1,24,000 and Rs.8,42,000 respectively. Consider 365 days. Calculate raw material consumption period.
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Answered by
3
Answer:
Explanation:
Average stock of RM/ Average stock of RM consumption per day
=. 124000/(842000/365)
= 53.77
Answered by
1
It will take 54 days.
The Raw material consumption period is the time in which an entity buys raw material from the outside seller and meanwhile, converts that raw material into a work-in-progress or finished good. This period shows the entity in how many days or months it takes to produce a finished good.
Raw Material Consumption period =
Average stock raw material/raw material consumption/365
= ₹124000/₹842000*365
= 53.75 or 54 days.
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