The Average Inventory Comprising Raw Materials, Work- In- Process, and Finished

question 124

Essay

The average inventory comprising raw materials, work- in- process, and finished goods, was found to be $18.4 million last year. If the cost of goods sold per week averaged $1.12 million. Assume the company had 50 working weeks per year.
a. What is their total inventory (measured as weeks of supply)?
b. What is their inventory turnover?

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Definitions:

Competitive Advantage

A condition or attribute that allows a company to outperform its competitors, often achieved through offering superior value to customers or operating more efficiently.

Manufacturing Business

An enterprise engaged in the industrial production of goods from raw materials or components, using various processes like assembling, fabricating, or processing.

Computer Desks

Furniture designed specifically to comfortably and ergonomically accommodate computers and related equipment for use in homes or offices.

Profitability

The ability of a business to generate earnings compared to its expenses and other relevant costs incurred during a specific period of time.