Problem 1-5A (Static) Raw materials inventory turnover LO A1

A manufacturing company reports the following information.

	Current Year	1 Year Ago	2 Years Ago
Raw materials inventory, ending	$ 169,500	$ 190,500	$ 197,500
Raw materials used	2,160,000	2,522,000	2,765,000

Required: 1. Compute raw materials inventory turnover for the most recent two years. 2. Is the current year change in raw materials inventory turnover ratio favorable or unfavorable? 3. Compute days sales in raw materials inventory for the current year.

• Required 1
• Required 2
• Required 3

Compute raw materials inventory turnover for the most recent two years.

	Current year	1 Year Ago
Raw materials inventory turnover

Is the current year change in raw materials inventory turnover ratio favorable or unfavorable?

	Is the current year change in raw materials inventory turnover ratio favorable or unfavorable?

Compute days sales in raw materials inventory for the current year. (Round your answer to 1 decimal place.)

Days sales in raw materials inventory for current year