Raw Materials Inventory Turnover 1. How is this ratio calculated? 2. What does the ratio show? 3. Using the data on the Sunn Corporation from page 21 (Need-to-Know 1-5) of the textbook, calculate and discuss the implications of Sunn's RM Inventory Turnover. Your response should show how you calculated the value. Days' Sales in Raw Materials Inventory 1. How is this ratio calculated? 2. What does the ratio show? 3. Using the data on the Sunn Corporation from page 21 of the textbook, calculate and discuss the implications of Sunn's Days' Sales in RM Inventory Advertising expense $ 8,000 9,000 $ Work in process inventory, Dec. 31, 85,000 2018 16,000 Work in process inventory, Dec. 31, 2019 28,000 Income taxes 37,000 Indirect labor 53,400 26,000 Amortization expense-Factory patents Bad debts expense Depreciation expense-Office equipment Depreciation expense-Factory building Depreciation expense-Factory equipment Direct labor Factory insurance used up 133,000 Interest expense 25,000 78,000 Miscellaneous expense 55,000 14,000 60,000 Factory supervisor salary 78,000 250,000 Property taxes on factory equipment 62,000 Raw materials inventory, Dec. 31, 2018 74,000 Raw materials inventory, Dec. 31, 2019 21,000 Raw materials purchases (direct materials) 115,000 Repairs expense-Factory equipment 15,000 Salaries expense 313,000 31,000 Factory supplies used (indirect materials) Factory utilities Finished goods inventory, Dec. 31, 2018 Finished goods inventory, Dec. 31, 2019 150,000 12,500 Sales 1,630,000