A concrete corporation had cost of goods sold of $1,550,000 for the third quarter. The beginning inventory at cost was $155,000, and the ending inventory at cost amounted to $180,900. The inventory turnover rate published as the industry standard for a business of this size is 9.5 times. Round inventories to the nearest cent and inventory turnovers to the nearest tenth. (a) Calculate the average inventory (in $) and actual inventory turnover rate for the company. average inventory s inventory turnover times (b) If the turnover rate is less than 9.5 times, calculate the target average inventory (in $) needed to theoretically come up to industry standards. If the turnover rate is greater than 9.5 times, enter "above".

A concrete corporation had cost of goods sold of $1,550,000 for the third quarter. The beginning inventory at cost was $155,000, and the ending inventory at cost amounted to $180,900. The inventory turnover rate published as the industry standard for a business of this size is 9.5 times. Round inventories to the nearest cent and inventory turnovers to the nearest tenth. (a) Calculate the average inventory (in $) and actual inventory turnover rate for the company. average inventory s inventory turnover times (b) If the turnover rate is less than 9.5 times, calculate the target average inventory (in $) needed to theoretically come up to industry standards. If the turnover rate is greater than 9.5 times, enter "above".

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 46E

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