Question
Average production cycle . Use the following account information for Rian Company. 2013 and 2014 Selected Balance Sheet Accounts of Rian Company 12/31/14 12/31/13 Change
Average production cycle.
Use the following account information for Rian Company.
2013 and 2014 Selected Balance Sheet Accounts of Rian Company |
| |||
12/31/14 | 12/31/13 | Change | ||
Accounts receivable | $42,486 | $51,526 | $9,040 | |
Inventory | $61,520 | $65,773 | $4,253 | |
Accounts payable | $29,966 | $27,608 | $2,358 |
2014 Selected Income Statement Items for Rian Company |
| |
Cash sales | $569,000 | |
Credit sales | $529,000 | |
Total sales | $1,098,000 | |
Cost of goods sold | $565,778 |
For the coming year, Rian Company wants to reduce its average production cycle to 38.3 days. If the target-ending inventory for 2015 is $67,912, what cost of goods sold will the company need to reach its goal?
If the target ending inventory for 2015 is $67,912, what cost of goods sold will the company need to reach its goal?
$(Round to the nearest dollar.)
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