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Company: RST Manufacturing Solutions Managerial Accounting Process: Inventory Management Product Beginning Inventory (units) Purchases (units) Sales (units) Ending Inventory (units) Cost per Unit ($) Product
Company: RST Manufacturing Solutions
Managerial Accounting Process: Inventory Management
Product | Beginning Inventory (units) | Purchases (units) | Sales (units) | Ending Inventory (units) | Cost per Unit ($) |
Product X | 5,000 | 3,000 | 4,000 | 4,000 | 50 |
Product Y | 3,000 | 2,500 | 2,200 | 3,300 | 40 |
Requirements:
- Inventory Valuation:
- Calculate the cost of goods sold (COGS) for Product X and Product Y using the weighted average cost method.
- Inventory Turnover Ratio:
- Compute the inventory turnover ratio for both Product X and Product Y and explain its significance in evaluating inventory management efficiency.
- Just-in-Time Inventory System:
- Discuss the advantages and disadvantages of implementing a just-in-time inventory system for RST Manufacturing Solutions based on the inventory data provided.
- ABC Analysis:
- Perform an ABC analysis to classify Product X and Product Y based on their annual sales revenue and recommend appropriate inventory management strategies for each category.
- Inventory Optimization:
- Recommend two strategies RST Manufacturing Solutions could adopt to optimize its inventory levels and reduce carrying costs based on the inventory turnover ratio analysis.
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