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Just - in - Time Inventories Nevada Manufacturing Company uses the perpetual inventory system and plans to use raw material costing $ 2 , 1

Just-in-Time Inventories Nevada Manufacturing Company uses the perpetual inventory system and plans to use raw material costing $2,100,000 in making its products. Nevada will operate its factory

300 days during the year. Currently, Nevada follows the just-in-case philosophy with its raw materials inventory, keeping raw materials costing $20,000 in its raw materials inventory. Nevada plans to switch to the just-in-time manufacturing philosophy by keeping only the raw materials needed for the next two days of production. Calculate the new raw materials inventory level after Nevada implements the just-in-time manufacturing philosophy.

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