Calculate Raw Material Turnover Ratio from following information Opening Stock of Raw Material Rs 10...........

Costing - Phase (I & II) Basics of Cost Control and Analysis

Calculate Raw Material Turnover Ratio from following information:

Opening Stock of Raw Material: Rs. 10,000/-

Purchases of Raw Material: Rs. 90,000/-

Closing Stock of Raw Material: Rs. 30,000/-

5 times

3.5 times

4 times

6 times

Raw material turnover ratio =

Cost of raw material consumed/Average stock of raw material

Where, cost of raw material consumed=

Opening Stock of Raw Material (+) Purchases of Raw Material (+) carriage Inwards (-) Closing Stock of Raw Material

Average stock of raw material=

Opening Stock of Raw Material (+) Closing Stock of Raw Material/2

In the given problem, Raw material turnover ratio= 70,000/20,000 = 3.5 times

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