what is their average aggregate inventory value, Finance Basics

1. The Marlin Company operates 50 weeks a year, and its cost of goods sold last year was $1,500,000. The firm carries six items in inventory: three raw materials, two work-in-process items, and one finished good. The following table shows the company's last year's average inventory levels for these items, along with their unit values.

Category

Part Number

Average Inventory

Units

Value per Unit

Raw Materials

RM-1

RM-2

RM-3

1750

1500

2000

$15

$25

$20

Work-in-process

WIP-1

WIP-2

1500

1200

$40

$50

Finished Goods

FG-1

1000

$75

a.  What is their average aggregate inventory value?

b.  How many weeks of supply does the firm have?

c.  What was their inventory turnover last year?

d. The turnover ratio is widely used because it is a common measure that links to the financial statements of the firm.  Discuss the benefits and drawbacks of using this measure.

Posted Date: 4/6/2013 5:25:36 AM | Location : United States







Related Discussions:- what is their average aggregate inventory value, Assignment Help, Ask Question on what is their average aggregate inventory value, Get Answer, Expert's Help, what is their average aggregate inventory value Discussions

Write discussion on what is their average aggregate inventory value
Your posts are moderated
Related Questions
A company that manufactures electrical appliances is looking at one of its lines (washing machines), where it offers three different levels of specification: Basic which sells for

Acceptance Rule of Payback Period or PBP By using PBP method a company such will accept all those ventures whose payback period is less than to set via the management and will


Advantage and Disadvantage of Sole Proprietorship Advantage of Sole Proprietorship High supervision of employees Income motivate owner Sole trade mostly ski

You are asked to select three variables for a sensitivity analysis of weighted average cost of capital, what would you choose and why? Weighted average cost of capital is th

Development of Lease Finance in Middle Asia Reasons Why Lease Finance Is Not Well Developed In Middle Asia 1. Lease charges are generally prohibitive that is the cost

Growth rate : The average of PC manufacturing industry growth rate was 22.24% for 2004, 20% for 2005, and 17.29% for 2006. It showed that the industry's growth rate has been declin

Creditors Payment Period Ratio Creditors payment period =   365/ Creditors turnover                                           = (365 x Average creditors)/Annual credit pu

Suppose an entrepreneur owns a firm that has a production technology that generates the following revenue: R(e) = e 2 +100e where revenue depends on his effort level e. The monetar

Example of Baumol's Model ABC Ltd. creates cash payments of Shs.10, 000 per week.  The interest rate at marketable securities is 12 percent and every moment the company sells