Question

Average stock of raw materials = 76,000
Annual consumption of raw materials = 7,20,000
1 year = 360 days

Raw mat storage period is?​

Answer 1

Answer:

Average stock of raw materials = 76,000

Annual consumption of raw materials = 7,20,000

1 year = 360 days

Raw material storage period is 2 years

Explanation:

The calculation of the cost of goods sold for a manufacturing company is:

Beginning Inventory of Finished Goods.

Add: Cost of Goods Manufactured.

Equals: Finished Goods Available for Sale.

Subtract: Ending Inventory of Finished Goods.

Equals: Cost of Goods Sold.

Consumption of materials is defined. The phrase "domestic material consumption" (DMC) refers to the total amount of materials (measured in weight) consumed in an economy, including all locally produced materials and goods plus all imported materials and goods less all exported goods.

We obtain material that is consumed or utilised in the creation of a product by adding opening stock of material and subtracting closing stock of raw material from the material acquired. The formula is as follows: Material Consumed = Material Bought + Opening Stock of Material - Closing Stock of Material.

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