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

Q: For the past year, Hawkeye, Inc., had a cost of goods sold of $63,882. At the end of the year, the…

A: Accounts payable turnover in days is used to signify how long it takes a company to clear its…

Q: entory balance was $1.67

A: First of all, find ITOR (Inventory Turnover Ratio) = Cost of Goods Sold COGS/ Average Inventory.…

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A: COGS=Beginning Inventory+Purchases+Freight In−Ending Inventory= 45,000+301,000+14,000−42,000=…

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A: The inventory turnover ratio is calculated as cost of goods sold divided by average inventory. The…

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A: LIFOLIFO stands for last in, first out. LIFO is an inventory accounting method where it is assumed…

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A: Cost of Goods Sold :— It is the total cost of units sold during the period.    Cost of Goods Sold is…

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A: An income statement is a financial report that depicts the financial performance of a business…

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A: Detailed explanation:100% gross amount - 10% discount = 90% net of discount$ 15300 of electricity…

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A: Step 1 All the goods, merchandise, and supplies that a company keeps on hand in anticipation of…

Q: Harrison Industries began July with a finished goods inventory of $52,000. The finished goods…

A: COST OF GOODS MANUFACTURED   Cost of goods manufactured Include cost of Raw material Used During…

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A: Formula: Net Sales = Total sales - sales returns. Deduction of sales returns from total sales…

Q: Determine the Inventory Turnover Ratio (ITR) and Days Sales Outstanding (DSO

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A: Inventory refers to the goods or items which are stored by the business either for selling or for…

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A: Income statement is a financial statement that shows profitability, total revenue and total…

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A: Days sale outstanding (DSO) measures the average number of days taken by the company to collect the…

Q: Inventory turnover at GTM Inc.:The average inventory levels at GTM are $1,200,000 and $2,500,000,…

A: Total Average Inventory = Average Raw Materials Inventory + Average WIP Inventory + Average Finished…

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A: Period costs are those costs which are expensed as and when incurred. These costs are costs which…

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A: Interpretation:The machine shop has an inventory turnover ratio of 2.8. This means they sell and…

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A: a)Inventory days Outstanding refers to number of days the company holds Inventory before it is sold…

Q: A firm has Sales of $2,820, Cost of Goods Sold of $2,160, Inventory of $504, and Accounts Receivable…

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A: Under the LIFO method, the inventory which has been purchased most recently is sold first and under…

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A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.  LIFO…

Q: Dexter, Incorporated, had a cost of goods sold of $43,921. At the end of the year, the accounts…

A: Given,  The cost of goods sold is $43,921 Accounts payable balance $7,943

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.