his Question: 8 pls Question Help i materials Jack Jones, the materials manager
ID: 377619 • Letter: H
Question
his Question: 8 pls Question Help i materials Jack Jones, the materials manager at Precision Enterprises, is beginnin g to look for ways to reduce inventories. A recent accounting statement shows that the inventory investment for raw cost of goods sold will be about $23,504,000. Assume that there are 52 business weeks per year $3,841.100, for work-in-process is $7,189,000, and for finished goods is $2,834,000. This years a. Express total inventory as weeks of supply The weeks of supply isweeks (Enteryour response rounded to one decimal place ) b. Express total inventory as inventory tuns The inventory turnover isturns per year (Enter your response r rounded to one decimal place)Explanation / Answer
Ans 1: a. Total value of inventory
= Raw materials + Work in progress + Finished goods
= 3841100+7189000+2834000 = 13864100
Weekly cost of goods sold = 23504000 /52 = 452000
No of weeks' inventory available = 13864100/452000 = 30.67
b. Inventory turnover = No. of weeks / No of week's inventory available
= 52/ 30.67 = 2 ( nearly)
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