Jack Jones, the materials manager at Precision Enterprises,is beginning to look for ways to reduce inventories. A re-cent accounting statement shows the following inventoryinvestment by category: raw materials, $3,129,500; work-in-process, $6,237,000; and finished goods, $2,686,500.This year’s cost of goods sold will be about $32.5 mil-lion. Assuming 52 business weeks per year, express totalinventory asa. Weeks of supplyb. Inventory turns
Jack Jones, the materials manager at Precision Enterprises,is beginning to look for ways to reduce inventories. A re-cent accounting statement shows the following inventoryinvestment by category: raw materials, $3,129,500; work-in-process, $6,237,000; and finished goods, $2,686,500.This year’s cost of goods sold will be about $32.5 mil-lion. Assuming 52 business weeks per year, express totalinventory asa. Weeks of supplyb. Inventory turns
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jack Jones, the materials manager at Precision Enterprises,
is beginning to look for ways to reduce inventories. A re-
cent accounting statement shows the following inventory
investment by category: raw materials, $3,129,500; work-
in-process, $6,237,000; and finished goods, $2,686,500.
This year’s cost of goods sold will be about $32.5 mil-
lion. Assuming 52 business weeks per year, express total
inventory as
a. Weeks of supply
b. Inventory turns
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