Question: House Max Builders constructs modular homes, and last year their cost of goods sold was $18,500,000. It operates 50 weeks per year. The company has
House Max Builders constructs modular homes, and last year their cost of goods sold was $18,500,000. It operates 50 weeks per year. The company has the following inventory of raw materials, work-in-process, and finished goods.

Raw Materials 1 Average Inventory 7,700 4,700 3,000 4,600 6,600 Unit Cost $8.50 6.60 2 3 16.00 4 13.00 5 10.60 Work-in-Process Average Inventory 130 80 A B Unit Cost $17,000 14,000 6,100 14,300 60 D 25 Average Inventory 24 Unit Cost Finished Goods Model X Model Y Model z 9 $76,700 65,500 85,200 12 Determine the number of inventory turns and the days of supply for the House Max. (Round answers to 2 decimal places, e.g. 52.52. Use 365 days for calculation.) Number of inventory turns Days of supply
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
