Assignment $-$ Inventory Part $1($Please show all

calculations$).$

Akers Inc. maintains average inventory of $$1,000,000($at

cost$).$ Last year, Akers sales volume was $$10,000,000$ and cost

of goods sold was $$7,000,000.$ Akers has determined that its

inventory carrying cost is $15\%$ annually. What was the inventory

turnover rate? How much was inventory carrying cost for the

year?

The following table contains data about the inventory for $5$

items at Jones Corporation. Complete the missing items in the

table.

Suppose Jones Corporation in the above problem determined

that its annual inventory carrying cost $=18\%.$ The item unit cost

was as follows:

Item $1=$$$25\mathrm{.}00$

Item $2=$$$60\mathrm{.}00$

Item $3=$$$5\mathrm{.}00$

Item $4=$$$10\mathrm{.}00$

Item $5=$$$1\mathrm{.}00$

Compute the dollar values in the above table, determine the

inventory carrying cost for each item, and the total annual

inventory carrying cost.

Again, using the data for Jones Company in Problem $2$ and $3,$

suppose Jones believes that in the upcoming year, the rate of

sales expected for each of the $5$ items is as follows:

Item $1=4,000$ units per day

Item $2=2,000$ units per day

Item $3=15,000$ units per day

Item $4=7,000$ units per day

Item $5=2,000$ units per day

Compute the days of supply for each item.

Meyer Stores carries a specialty line of flavored syrups. One

of the most popular of these is raspberry syrup which sells, on

average, $30$ bottles per week. Meyer's cost is $$8$ per bottle.

Meyer has determined its order cost to be $$50$ and inventory

carrying cost is $20\%.$ Meyer is open for business $52$ weeks per

year.

What is the EOQ for raspberry syrup?

If Meyer orders the EOQ quantity each time, what will be the

inventory turnover rate for raspberry syrup?