Raw Materials Average Inventory Unit Cost 1 7200 $8.50 4500 7.20 3200 15.40 4800 13.70 6900 10.50 Work-in-Process A Average Inventory Unit Cost $16,200 13,500 100 B 70 C 60 6,100 D 35 14,400 Finished Goods Model X 20 $78,700 Model Y 10 65,300 86,000 Model Z 10 234 5

Raw Materials Average Inventory Unit Cost 1 7200 $8.50 4500 7.20 3200 15.40 4800 13.70 6900 10.50 Work-in-Process A Average Inventory Unit Cost $16,200 13,500 100 B 70 C 60 6,100 D 35 14,400 Finished Goods Model X 20 $78,700 Model Y 10 65,300 86,000 Model Z 10 234 5

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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Question

House Max Builders constructs modular homes, and last
year their cost of goods sold was $18,500,000. It operates

50 weeks per year. The company has the following inven-
tory of raw materials, work-in-process, and finished goods.Determine the number of inventory turns and the days of
supply for House Max.

Raw Materials
Average Inventory
Unit Cost
1
7200
$8.50
4500
7.20
3200
15.40
4800
13.70
6900
10.50
Work-in-Process
A
Average Inventory
Unit Cost
$16,200
13,500
100
B
70
C
60
6,100
D
35
14,400
Finished Goods
Model X
20
$78,700
Model Y
10
65,300
86,000
Model Z
10
234 5

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