Question

The average stock of raw materials and the annual consumption of raw materials are as follows: Rs. 124,000 and Rs. 842,000, respectively. Assuming a year consists of 365 days, calculate the daily material consumption per day.

Answer 1

To calculate the daily material consumption per day, divide the annual consumption of raw materials by the number of days in a year.

Step-by-step explanation:

To calculate the daily material consumption per day, we need to divide the annual consumption of raw materials by the number of days in a year.

Annual material consumption = Rs. 842,000

Number of days in a year = 365

Daily material consumption = Annual material consumption / Number of days in a year

= Rs. 842,000 / 365

= Rs. 2,306.85

Therefore, the daily material consumption per day is Rs. 2,306.85