3-The following table contains data about the inventory for five items and its unit cost at Jones Corporation. Item Average Unit Inventory Unit Cost 1 185,000 $30.00 2 90,000 $70.00 3 120,000 $12.00 4 385,000 $26.00 5 94,000 $11.00 Suppose Jones Corporation determined that its annual inventory carrying cost = 16 percent. Compute the dollar values for the information in the above table, determine the annual inventory carrying cost for each item, and the total annual inventory carrying cost. (Omit the $ sign in your response.) Inventory Carrying Cost Item 1 $ ____ Item 2 $ ____ Item 3 $ ____ Item 4 $ ____ Item 5 $ ____

Total annual inventory carrying cost $ ____

4-The following table contains data about the inventory for five items at Jones Corporation and the rate of sales expected for each of the five items in the upcoming year. Item # Beginning Ending Unit Annual Unit Unit Sale Unit Inventory Inventory Sales Per Day 1 22,000 190,000 420,000 5,300 2 110,000 84,000 111,000 4,600 3 128,000 126,000 220,000 22,000 4 390,000 480,000 540,000 14,000 5 100,000 108,000 174,000 7,800 Compute the days of supply for each item. (Round your answer to 2 decimal places.) Item # Days of Supply 1 ____ days 2 ____ days 3 ____ days 4 ____ days 5 ____ days

Answer Key:

35.85, 18.26, 5.73, 34.29, 13.85

5-The following table contains data about the inventory for five items at Jones Corporation. Item # Beginning Unit Ending Unit Annual Unit Unit Cost Inventory Inventory Sales 1 150,000 120,000 480,000 $52.00 2 40,000 60,000 269,000 $18.00 3 85,000 97,000 350,000 $37.00 4 200,000 170,000 206,000 $3.00 5 50,000 60,000 136,000 $1.00

Total 525,000 507,000 1,441,000 Complete the ABC analysis of the five items that Jones Corporation carries in inventory. (Round your annual sales to the nearest dollar amount and other answers to 1 decimal place. Omit the $ & % signs in your response.)

Item #	Annual Sales Revenue	% of Annual Sales Revenue	Cumulative % of Annual Sales Revenue	Class
				A
				A
				B
				C
				C
TOTAL