Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. KB Builders constructs modular homes. The companys cost of goods sold last year was $11,000, 000 and it operates 50 weeks per year. The

1. KB Builders constructs modular homes. The companys cost of goods sold last year was $11,000, 000 and it operates 50 weeks per year. The company has the following inventory of raw materials, work-in-process, and finished goods.

Raw Materials Average Inventory Unit Cost

1 5400 7.50

2 3900 9.50

3 4500 8.20

4 5700 10.15

Work-in Process Average Inventory Unit Cost

5 99 15,300

6 89 10,100

7 85 7,400

8 97 5,600

Finished Goods Average Inventory Unit Cost

Model WR 30 15,300

Model QP 12 10,100

Model VM 5 7,400

a. Determine the number of inventory turns and the days of supply for KB Builders.

b. As a consultant, what would you suggest the company to do to improve its inventory turnover? Answer the question in a clear and organized paragraph

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Small Business Management Entrepreneurship and Beyond

Authors: Timothy s. Hatten

5th edition

538453141, 978-0538453141

More Books

Students also viewed these General Management questions