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

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.