Using the Information Below, Compute the Days' Sales in Raw

question 26

Multiple Choice

Using the information below, compute the Days' sales in raw materials inventory: $\begin{array}{lr}\text { Raw Materials Used } & \$ 121,600 \\\\\text { Beginning Raw Materials Inventory } & 18,000 \\\text { Ending Raw Materials Inventory } & 20,200\end{array}$

• A) 54.0.
• B) 6.02.
• C) 6.37.
• D) 6.76.
• E) 60.6.

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Definitions:

Process Cost Accounting System

An accounting system used to track and allocate costs of production by process or department, commonly employed in manufacturing environments with continuous, homogeneous outputs.

Product Quantity

The total number of units of a product that are produced, available for sale, or sold at a given time.

Factory

A building or set of buildings where goods are manufactured or assembled chiefly by machine.

Process Cost Accounting

An accounting method that accumulates costs for each process or department within a manufacturing environment.