Question: NEED HELP WITH QUESTION B Q2.3 (Algo) Inventory Cost [2.4] A manufacturing company producing medical devices reported $159,600,000 in sales over the last year. At

NEED HELP WITH QUESTION B

NEED HELP WITH QUESTION B Q2.3 (Algo) Inventory

Q2.3 (Algo) Inventory Cost [2.4] A manufacturing company producing medical devices reported $159,600,000 in sales over the last year. At the end of the same year, the company had $66,500,000 worth of inventory of ready-to-ship devices. a. Assuming that units in inventory are valued (based on COGS) at $1,900 per unit and are sold for $3,800 per unit, what are the annual inventory turns? The company uses a 28 percent per year cost of inventory. That is, for the hypothetical case that one unit of $1,900 would sit exactly one year in inventory, the company charges its operations division a $532 inventory cost. (Round the answer to 2 decimal places.) Answer is complete and correct. Turns 1.20 per year b. What is the per unit inventory cost in $ for a product that costs $1,900? (Round the answer to 2 decimal places.) Answer is complete but not entirely correct. Absolute inventory cost $ 441.60 X

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!