Solved Problem

A firm’s cost of goods sold last year was $3,410,000, and the firm operates 52 weeks per year. It carries seven items in inventory: three raw materials, two work-in-process items, and two finished goods. The following table contains last year’s average inventory level for each item, along with its value.

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  1. What is the average aggregate inventory value?

  2. How many weeks of supply does the firm maintain?

  3. What was the inventory turnover last year?

    Category

    Part Number

    Average Level

    Unit Value

    Raw materials

    1

    15,000

    $3.00

    2

      2,500

      5.00

    3

      3,000

      1.00

    Work-in-process

    4

      5,000

    14.00

    5

      4,000

    18.00

    Finished goods

    6

      2,000

    48.00

    7

      1,000

    62.00

Solution

  1. Part Number

    Average ...

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