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A company has 8 weeks of work in process (WIP) inventory and an annual cost of goods sold (CGS) of

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A company has 8 weeks of work in process (WIP) inventory and an annual cost of goods sold (CGS) of $18,000,000. There are 50 working weeks per year. 

a) What is the dollar value of WIP? 

b) The company wants to reduce its WIP levels from 8 weeks to 4 . Assuming that the company is successful in its efforts, what will be the financial impact to the business if the holding cost of WIP is 21%

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To calculate the dollar value of WIP Work in Process and the financial impact of reducing it you can View the full answer


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Accounting for Decision Making and Control

Accounting for Decision Making and Control

ISBN: 978-0078025747

8th edition

Authors: Jerold Zimmerman

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Posted Date: September 08, 2023 02:12:19
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