Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Andrew Manufacturing held an average inventory of $ 1 . 0 million ( raw materials, work - in - process, finished goods ) last year.

Andrew Manufacturing held an average inventory of $1.0 million (raw materials, work-in-process, finished goods) last year. Its sales were $8.5 million, and its cost of goods sold was $5.4 million. The firm operates 285 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):
49.13
days
What target inventory level is necessary to reach a 20- 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 (20-day): $
Target inventory level (10-day): $

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

The Fraud Audit Responding To The Risk Of Fraud In Core Business Systems

Authors: Leonard W. Vona

1st Edition

0470647264, 978-0470647264

More Books

Students also viewed these Accounting questions

Question

Is navigation efficient and straightforward?

Answered: 1 week ago

Question

Explain the relationship between language and culture

Answered: 1 week ago

Question

Compare and contrast elaborated and restricted codes

Answered: 1 week ago