Question
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started