Which of the Following Is the Correct Formula for Calculating

question 119

Multiple Choice

Which of the following is the correct formula for calculating days' sales in raw materials inventory for a manufacturer?

• A)Raw materials purchased/Average raw materials inventory.
• B)Average raw materials inventory/Raw materials used.
• C)Raw materials used/Average raw materials inventory.
• D)Ending raw materials inventory/Raw materials used × 365.
• E)Raw materials used/Beginning raw materials inventory × 365.

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