A manufacturing company producing medical devices reported $72,000,000 in sales over the last year. At the end of the same year, the company had $27,000,000 worth of inventory of ready-to-ship devices. a. Assuming that units in inventory are valued (based on COGS) at $900 per unit and are sold for $1,800 per unit, what are the annual inventory turns? The company uses a 20 percent per year cost of inventory. That is, for the hypothetical case that one unit of $900 would sit exactly one year in inventory, the company charges its operations division a $180 inventory cost. (Round the answer to 2 decimal places.) Turns 1.33 per year b. What is the per unit inventory cost in $ for a product that costs $900? (Round intermediate calculations and final answer to 2 decimal places.) Absolute inventory cost
A manufacturing company producing medical devices reported $72,000,000 in sales over the last year. At the end of the same year, the company had $27,000,000 worth of inventory of ready-to-ship devices. a. Assuming that units in inventory are valued (based on COGS) at $900 per unit and are sold for $1,800 per unit, what are the annual inventory turns? The company uses a 20 percent per year cost of inventory. That is, for the hypothetical case that one unit of $900 would sit exactly one year in inventory, the company charges its operations division a $180 inventory cost. (Round the answer to 2 decimal places.) Turns 1.33 per year b. What is the per unit inventory cost in $ for a product that costs $900? (Round intermediate calculations and final answer to 2 decimal places.) Absolute inventory cost
Chapter1: Financial Statements And Business Decisions
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![Q2.3 (Algo) Inventory Cost [2.4]
A manufacturing company producing medical devices reported
$72,000,000 in sales over the last year. At the end of the same year, the
company had $27,000,000 worth of inventory of ready-to-ship devices.
a. Assuming that units in inventory are valued (based on COGS) at $900
per unit and are sold for $1,800 per unit, what are the annual inventory
turns? The company uses a 20 percent per year cost of inventory. That is,
for the hypothetical case that one unit of $900 would sit exactly one year
in inventory, the company charges its operations division a $180
inventory cost. (Round the answer to 2 decimal places.)
Turns
1.33 per year
b. What is the per unit inventory cost in $ for a product that costs $900?
(Round intermediate calculations and final answer to 2 decimal places.)
Absolute inventory cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F55ea95e8-ee0b-43f8-afe5-c2d73d06ecf4%2F0a7a558f-f5ce-4345-8031-714948468901%2Fkt4w2ur_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q2.3 (Algo) Inventory Cost [2.4]
A manufacturing company producing medical devices reported
$72,000,000 in sales over the last year. At the end of the same year, the
company had $27,000,000 worth of inventory of ready-to-ship devices.
a. Assuming that units in inventory are valued (based on COGS) at $900
per unit and are sold for $1,800 per unit, what are the annual inventory
turns? The company uses a 20 percent per year cost of inventory. That is,
for the hypothetical case that one unit of $900 would sit exactly one year
in inventory, the company charges its operations division a $180
inventory cost. (Round the answer to 2 decimal places.)
Turns
1.33 per year
b. What is the per unit inventory cost in $ for a product that costs $900?
(Round intermediate calculations and final answer to 2 decimal places.)
Absolute inventory cost
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