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
Profitability Index or P.I. P.I. (benefit-cost ratio) = Present value of inflows / Present value of cash outlay Whether P.I. is greater than 1.0, invest and whereas less th

Importance of Interest Rates These are of a specifically relevance to a finance manager since: i) They measure the cost of borrowing. ii) Interest rates in a country influen

What are the financial intermediaries? Financial Intermediaries: a. Mutual funds b. Pension funds c. Life insurance companies d. Banks

explain any four actions or transactions by shareholders that could be harmful to the interests of debt holders (sources of conflict). estion #Minimum 100 words accepted#


what is cash budgeting and what is it used for


Determine the Component of Return Rate of return from an investment consists of the two: (i) Yield: Interest or dividend received is called yield. (ii) Capital Appreci

Setting a Reorder Point - ROP  Once the order quantity has been determined, the next question to be settled is when to place the order. If an order is released and it takes th