a. Finished Goods: Cost of Goods Sold / Finished Goods Inventory
2010: $230,000 / $40,000 = 5.75
2011: $225,000 / $60,000 = 3.75
b. Goods in Process: Cost of Goods Manufactured / Average Goods in Process Inventory
2010: $250,000 / (($65,000 + $60,000) / 2) = 4.00 times
2011: $260,000 / (($60,000 + $65,000) / 2) = 4.16 times
c. Raw Materials: Raw Material Used in Production / Raw Material Stock
2010: $130,000 / $65,000 = 2
2011: $150,000 / $60,000 = 2.5
Analyze the turnover results as to reasonableness and the message they send to a statement reader.