How much was the inventory carrying cost for the year

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Reference no: EM13896759

1. 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 percent annually. What was the inventory turnover rate? How much was the inventory carrying cost for the year?

2. The following table contains data about the inventory for five items at Jones Corporation. Complete the missing items in the table.

Item #	Beginning Unit Inventory	Ending Unit Inventory	AverageUnit Inventory	Annual Unit Sales	InventoryTurnover
1	150,000	120,000		400,000
2	40,000	60,000		80,000
3	85,000	97,000		190,000
4	200,000	170,000		350,000
5	50,000	60,000		165,000
Total

Reference no: EM13896759

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