Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $6,500,000. The firm carries eight items in inventory: four raw materials, two work-in-process items, and two finished goods. Table shows last year’s average inventory levels for these items, along with their unit values.a. What is the average aggregate inventory value?b. How many weeks of supply does the firm have?c. What was the inventory turnover last year? Sapphire Aerospace Inventory Items Category Part Number Average InventoryUnits Value per Unit Raw materials RM-1 20000 $1 RM-2 5000 5 RM-3 3000 6 RM-4 1000 8 Work-in-process WIP-1 6000 10 WIP-2 8000 12 Finished goods FG-1 1000 65 FG-2 500 88
Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $6,500,000. The firm carries eight items in inventory: four raw materials, two work-in-process items, and two finished goods. Table shows last year’s average inventory levels for these items, along with their unit values.a. What is the average aggregate inventory value?b. How many weeks of supply does the firm have?c. What was the inventory turnover last year? Sapphire Aerospace Inventory Items Category Part Number Average InventoryUnits Value per Unit Raw materials RM-1 20000 $1 RM-2 5000 5 RM-3 3000 6 RM-4 1000 8 Work-in-process WIP-1 6000 10 WIP-2 8000 12 Finished goods FG-1 1000 65 FG-2 500 88
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 14P
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Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $6,500,000. The firm carries eight items in inventory: four raw materials, two work-in-process items, and two finished goods. Table shows last year’s average inventory levels for these items, along with their unit values.
a. What is the average aggregate inventory value?
b. How many weeks of supply does the firm have?
c. What was the inventory turnover last year?
Sapphire Aerospace Inventory Items |
|||
Category | Part Number | Average Inventory Units |
Value per Unit |
Raw materials | RM-1 | 20000 | $1 |
RM-2 |
5000 |
5 | |
RM-3 | 3000 | 6 | |
RM-4 | 1000 | 8 | |
Work-in-process | WIP-1 | 6000 | 10 |
WIP-2 | 8000 | 12 | |
Finished goods | FG-1 | 1000 | 65 |
FG-2 | 500 | 88 |
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