Question: Sterling, inc. operates 52 weeks per year, and its cost of goods sold last year was $6,500,000. The firm carries eight items in inventory four

Sterling, inc. operates 52 weeks per year, and its cost of goods sold last year was $6,500,000. The firm carries eight items in inventory four raw materials, two work-in- process items, and two finished goods. Table shows last year€™s average inventory levels for these items, along with their unit values.

a. What is the average aggregate inventory value?
b. How many weeks of supply does the firm have?
c. What was the inventory turnover lastyear?

STERLING INVENTORY ITEMS Part Number RM-1 RM-2 RM-3 RM-4 Value per Unit $1 Category Average Inventory Units 20,000 5.000 3,000 1,000 6,000 8,000 1,000 Raw materials Work-in-process WIP-1 WIP-2 FG 1 FG-2 10 12 65 Finished goods 500

Step by Step Solution

★★★★★

3.43 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Sterling Inc a Average Part Number Inventory units Value unit Total Value RM1 20000 100 20000 RM2 5... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

227-B-M-L-S-C-M (964).docx

120 KBs Word File

Students Have Also Explored These Related Management Leadership Questions!

What is underapplied overhead? When Cost of Goods Sold is adjusted for underapplied overhead, will the cost increase or decrease? Why?

What is overapplied overhead? When Cost of Goods Sold is adjusted for overapplied overhead, will the cost increase or decrease? Why?

How is cost of goods sold determined?

Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $10,192,000. The firm carries eight items in inventory four raw materials, last year's average inventory levels...

Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $12,428,000. The firm carries eight items in inventory, four raw materials, two work-in-process items, and two...

11. Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $15,496,000. The firm carries eight items in inventory four raw materials, two work-in-process items, and...

Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $13,676,000. The firm carries eight items in inventory: four raw materials, two work-in-process items, and two...

Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $ 1 4 , 6 1 2 , 0 0 0 . The firm carries eight items in inventory: four raw materials, two work-in-process...

Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $7,852,000. The firm carries eight items in inventory: four raw materials, two work-in-process items, and two...

Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $14,144,000. The firm carries eight items in inventory: four raw materials, two work-in-process items, and two...

Pantothenic acid is a B vitamin. Using the Dumas method, you find that a sample weighing 71.6 mg gives 3.84 mL of nitrogen gas at 23oC and 785 mmHg. What is the volume of nitrogen at STP?

K 6:22 COM362_Proje... FUTURE UNIVERSITY wtare Course Project Due date: August 27, 2022. Consider the system shown in figure, where h(t)e-t-Au(t-A) x(t)-u(t)-u(t): Osts1/A x(0) where A is the first...

Official court decisions involving tax controversies are published in: Question 2 9 options: a ) Tax Court Reports or T . C . b ) the Federal Supplement Reporter or F . Supp. c ) the Federal Reporter...

Write short note on chairman of general meeting. (Ref. Para-21.16)

Revisit the Helping Harvest problem in Problem 5. Assume that due to truck capacity constraints, not all stores can be visited in one route. Use the NN heuristic to develop two routes, one that picks...

Professor Gaffney needs to ship 800 pounds of laboratory equipment to a colleague across country. Due to limited departmental funds, Dr. Gaffney would like to minimize total shipment costs....

Could I get an interpretation (100 words) of the following yield to maturity calculations for the following TUI AG convertible bond TUI AG 5% ISIN: DE000A3E5KG2 WKN: A3E5KG - Due 2028 Yield to...

PRICE SHARES Company A B C A B C Day 1 $12 $24 $54 450 380 220 Day 2 11 21 55 450 380 220 Day 3 14 48 60 450 190a 220 Day 4 11 46 29 450 190 440b Day 5 12 46 30 450 190 440 aSplit at close of day 2....

1. Say we have a simple linear regression with a single response Y and a single quantitative covariate X. The population model is: Y; = 60 + 61X\"; + 53-. An observation of X, say X,, is considered...