Question

From the following information, calculate Inventory Turnover Ratio and Inventory Turnover Period : Maximum Stock Level 1,500 Units Minimum Stock Level 600 Units Re-order quantity 750 Units Issues 3,750 Units ​

Answer 1

Given: weight of the finished product = 10 grams per pc.

Assuming that there is no other loss of material, the total material required for

1,980 pcs. of input of Process A shall be:1,980 pcs. X 10 gms.

= 19,800 gms.Rate of Material = $1 per kg.Cost of raw material = (19,800X1) / 1,000 = $19.80Cost o fraw material per pc.= 19.80 / 1,000 = $0.0198

Answer 2

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