OM6 ONLINE-LMS INTEGRATED ACCESS
6th Edition
ISBN: 9781337118323
Author: Collier
Publisher: CENGAGE L
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Chapter 12, Problem 3PA
Summary Introduction
Interpretation: Inventory days’ supply needs to be calculated based on the given information.
Concept Introduction: Inventory day’s supply is the ratio of average inventory level and cost of goods sold per day.
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Students have asked these similar questions
Andrew Manufacturing held an average inventory of $1.5 million (raw materials, work-in-process, finished goods) last year. Its sales were $8.5 million, and its cost of goods sold was $6.2 million. The firm operates 290 days a year. What is the inventory days’ supply? What target inventory level is necessary to reach a 15- and 10-day inventory days supply during the next two years?
Can you assist me with Question 11. Please display the step process. Thank you
Andrew Manufacturing held an average inventory of $1.2 million (raw materials, work-in-process, finished goods) last year. Its sales were $8.5 million, and its cost of goods sold was $5.7 million. The firm operates 260 days a year. What is the inventory days' supply? Do not round intermediate calculations. Round your answer to one decimal place.
Inventory days' supply (IDS): days
What target inventory level is necessary to reach a 30- and 10-day inventory days' supply during the next two years? Do not round intermediate calculations. Round your answers to the nearest dollar.
Target inventory level (30-day): $
Target inventory level (10-day): $
Chapter 12 Solutions
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