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 |
|
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| Raw Materials |
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|
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| Average Inventory | Unit Cost |
|
| 1 | 7,200 | $8.50 |
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| 2 | 4,500 | $7.20 |
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| 3 | 3,200 | $15.40 |
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| 4 | 4,800 | $13.70 |
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| 5 | 6,900 | $10.50 |
|
| Work-in-Progress |
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|
|
| A | 100 | $16,200.00 |
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| B | 70 | $13,500.00 |
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| C | 60 | $6,100.00 |
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| D | 35 | $14,400.00 |
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| Finished Goods |
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|
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| Model X | 20 | $78,700.00 |
|
| Model Y | 10 | $65,300.00 |
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| Model Z | 10 | $86.000.00 |
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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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