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06-10-2020
Business

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Average stock of raw material and raw material consumption per annum are Rs.1,24,000 and Rs.8,42,000 respectively. Consider 365days. Calculate raw material consumption period.

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Parrain Parrain

11-10-2020

Answer: 54 days

Explanation:

Raw Material consumption period = Average stock of Raw Material / Average stock of Raw material Consumption per day

Average stock of Raw material Consumption per day = Raw Material consumption per Annum / 365

= 842,000/365

= Rs. 2,306.85

Raw material consumption period

= 124,000/2,306.85

= 53.75

= 54 days

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