Question: Max House Builders builds modular homes. Last year its cost of goods sold was 18.5 million. It operates 50 weeks per year The company has

Max House Builders builds modular homes.

Last year its cost of goods sold was 18.5 million.

It operates 50 weeks per year

The company has the following inventory of raw materials

Cost of Goods Sold

18,500,000.00

Raw Materials

Average Inventory

Unit Cost

1

7,200

$8.50

2

4,500

$7.20

3

3,200

$15.40

4

4,800

$13.70

5

6,900

$10.50

Work-in-Progress

A

100

$16,200.00

B

70

$13,500.00

C

60

$6,100.00

D

35

$14,400.00

Finished Goods

Model X

20

$78,700.00

Model Y

10

$65,300.00

Model Z

10

$86.000.00

Determine the number of inventory turns (3marks) and the days of supply for Max House Builders (3marks).

Explain what can Max House builder do with the information? (4marks)?

Show your Calculations?

please explain the 4 mark question

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