Calculate the Average Inventory and Inventory Turnover

question 40

Essay

Calculate the average inventory and inventory turnover. If the actual turnover is below the published rate, calculate the target average inventory necessary to come up to industry standards, rounding to the nearest tenth: $$\begin{array} { l l l } \text { Cost of Goods Sold } & \text { B eginning Inventory } & \text { Ending Inventory } \\\hline \$ 506,000 & \$ 28,000 & \$ 32,000 \\\$ 183,000 & \$ 25,600 & \$ 28,000 \\\$ 6,520,000 & \$ 1,565,000 & \$ 1,590,000 \\\$ 1,260,000 & \$ 115,000 & \$ 90,000\end{array}$$ $$\begin{array} { l l l l l } & \text { Average } & \text { Inventory } \\\text { Inventory } & \text { Turnover } & \begin{array} { l } \text { Published } \\\text { Rate }\end{array} & \begin{array} { l } \text { Target Average } \\\text { Inventory }\end{array} \\\hline \text { a. } & & 14.3 & \\\text { b. } & & 7.5 & \\\text { c. } & & 5.0 & \\\text { d. } & & 18.0 &\end{array}$$

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Definitions:

Intermittent Self-catheterization

A technique whereby individuals manually insert a catheter into the bladder to empty it; used by people who cannot naturally urinate.

Sterile Technique

A set of practices used in healthcare to eliminate all microorganisms from an environment or equipment, maintaining sterility during medical procedures.

Urine Specific Gravity

A measure of the concentration of solutes in the urine, reflecting the kidney's ability to concentrate urine.

Dehydration

A condition resulting from the excessive loss of body water, disrupting metabolic processes and potentially leading to serious health issues.