Barington Mills manufactures denim cloth from two primary raw materials, cotton and dye. Work-in-process includes lapped cotton, spun yarn, and undyed cloth, while finished goods include three grades of dyed cloth. The average inventory amounts on hand at any one time last year and the unit costs are as follows. Average inventory Unit cost Raw materials: Cotton 70,000 lb. $2.75 Dye 125,000 gal. $5 Work in process: Lapped cotton 2,000 rolls $10.50 Spun yarn 5,000 spools $6.75 Undyed cloth 500 rolls $ 26.10 Finished goods: Grade 1 cloth 250 rolls Grade 2 cloth 190 rolls Grade 3 cloth 310 rolls $65 $ 80 $ 105 The company operates 50 weeks per year, and its cost of goods sold for the past year was $17.5 million. Determine the company's inventory turns and weeks of supply.
Barington Mills manufactures denim cloth from two primary raw materials, cotton and dye. Work-in-process includes lapped cotton, spun yarn, and undyed cloth, while finished goods include three grades of dyed cloth. The average inventory amounts on hand at any one time last year and the unit costs are as follows. Average inventory Unit cost Raw materials: Cotton 70,000 lb. $2.75 Dye 125,000 gal. $5 Work in process: Lapped cotton 2,000 rolls $10.50 Spun yarn 5,000 spools $6.75 Undyed cloth 500 rolls $ 26.10 Finished goods: Grade 1 cloth 250 rolls Grade 2 cloth 190 rolls Grade 3 cloth 310 rolls $65 $ 80 $ 105 The company operates 50 weeks per year, and its cost of goods sold for the past year was $17.5 million. Determine the company's inventory turns and weeks of supply.
Chapter5: Process Costing
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Transcribed Image Text:Barington Mills manufactures denim cloth from two primary raw
materials, cotton and dye. Work-in-process includes lapped cotton,
spun yarn, and undyed cloth, while finished goods include three grades
of dyed cloth. The average inventory amounts on hand at any one time
last year and the unit costs are as follows.
Average inventory
Unit cost
Raw materials:
Cotton
70,000 lb.
$2.75
Dye
125,000 gal.
$5
Work in process:
Lapped cotton
2,000 rolls
$10.50
Spun yarn
5,000 spools
$6.75
Undyed cloth
500 rolls
$ 26.10
Finished goods:
Grade 1 cloth
250 rolls
Grade 2 cloth
190 rolls
Grade 3 cloth
310 rolls
$65
$ 80
$ 105
The company operates 50 weeks per year, and its cost of goods sold
for the past year was $17.5 million.
Determine the company's inventory turns and weeks of supply.
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