Last answered:

02 Apr 2024

Posted on:

02 Apr 2024

1

I don't understand how to handle the operation number 8

Can you explain the operation number 8 ? "Saldi had supplies worth $34 000 000 at the end of the year; the rest of raw materials were used for the production of goods that were sold"


how to handle ? cause i dont understand 

2 answers ( 0 marked as helpful)
Posted on:

02 Apr 2024

0

and specially why we got 238 000 000 now in inventory ?

Posted on:

02 Apr 2024

0

Oh okay, I understand by myself. It is stated that we had $34,000,000 at the end of the year 2015, and the remaining raw materials were used up, whereas in 2014 there were $32,000,000 of raw materials left. So, $240,000,000 - $34,000,000 = $206,000,000 (this amount represents the raw materials consumed in 2015) + $32,000,000 (which corresponds to the raw materials from the year 2014) that will also be consumed in 2015. Therefore, by the end of 2015, we will have consumed a total of $238,000,000 worth of raw materials, with $34,000,000 remaining in stock.

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