Alice Judy operates a chain of beauty-products retail stores. Her stock holding carries several range of inventory items, and Judy knows that there are costs associated with inventory holding. Majority of her stock holdings procured from global market and it has caused issue relates to returns. Furthermore, Alice Judy also faced difficulty in terms of slow inventory turnover for certain products. However, because her time is limited, she cannot carefully evaluate the inventory return policy for all products and Judy wants to classify a range of items according to dollars invested in them. The following table provides information about the 10 core items that she carries: Demand (units) 720 Items No Unit Cost A007 $5.00 C423 W127 $7.00 $6.50 1160 650 F502 $3.20 $8.00 $6.80 960 415 K819 L3107 370 S9123 $4.20 $6.00 $2.70 1200 U3115 680 B7723 2070 V9075 $3.50 1910 Compute a complete ABC analysis to classify these items into categories A, B, and C.

Alice Judy operates a chain of beauty-products retail stores. Her stock holding carries several range of inventory items, and Judy knows that there are costs associated with inventory holding. Majority of her stock holdings procured from global market and it has caused issue relates to returns. Furthermore, Alice Judy also faced difficulty in terms of slow inventory turnover for certain products. However, because her time is limited, she cannot carefully evaluate the inventory return policy for all products and Judy wants to classify a range of items according to dollars invested in them. The following table provides information about the 10 core items that she carries: Demand (units) 720 Items No Unit Cost A007 $5.00 C423 W127 $7.00 $6.50 1160 650 F502 $3.20 $8.00 $6.80 960 415 K819 L3107 370 S9123 $4.20 $6.00 $2.70 1200 U3115 680 B7723 2070 V9075 $3.50 1910 Compute a complete ABC analysis to classify these items into categories A, B, and C.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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