The Ashton Furniture Company manufactures coffee tablesand chest of drawers. Last year the company’s cost ofgoods sold was $3,700,000, and it carried inventory of oak,pine, stains, joiners, and brass fixtures, work-in-process offurniture frames, drawers and wood panels, and finishedchests and coffee tables. Its average inventory levels for a52-week business year were as follows. Determine the number of inventory turns and the days ofsupply for the furniture company. Raw Materials Average Inventory Unit CostOak 8000 $6.00Pine 4500 4.00Brass fixtures 1200 8.00Stains 3000 2.00Joiners 900 1.00Work-in-ProcessFrames 200 $30Drawers 400 10Panels 600 50Chests 120 110Tables 90 90Finished GoodsChests 300 $500Coffee tables 200 350
The Ashton Furniture Company manufactures coffee tablesand chest of drawers. Last year the company’s cost ofgoods sold was $3,700,000, and it carried inventory of oak,pine, stains, joiners, and brass fixtures, work-in-process offurniture frames, drawers and wood panels, and finishedchests and coffee tables. Its average inventory levels for a52-week business year were as follows. Determine the number of inventory turns and the days ofsupply for the furniture company. Raw Materials Average Inventory Unit CostOak 8000 $6.00Pine 4500 4.00Brass fixtures 1200 8.00Stains 3000 2.00Joiners 900 1.00Work-in-ProcessFrames 200 $30Drawers 400 10Panels 600 50Chests 120 110Tables 90 90Finished GoodsChests 300 $500Coffee tables 200 350
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The Ashton Furniture Company manufactures coffee tables
and chest of drawers. Last year the company’s cost of
goods sold was $3,700,000, and it carried inventory of oak,
pine, stains, joiners, and brass fixtures, work-in-process of
furniture frames, drawers and wood panels, and finished
chests and coffee tables. Its average inventory levels for a
52-week business year were as follows.
Determine the number of inventory turns and the days of
supply for the furniture company.
Raw Materials Average Inventory Unit Cost
Oak 8000 $6.00
Pine 4500 4.00
Brass fixtures 1200 8.00
Stains 3000 2.00
Joiners 900 1.00
Work-in-Process
Frames 200 $30
Drawers 400 10
Panels 600 50
Chests 120 110
Tables 90 90
Finished Goods
Chests 300 $500
Coffee tables 200 350
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