A Television Manufacturer Would Like to Reduce Its Inventory

question 29

Essay

A television manufacturer would like to reduce its inventory. To this end, you are asked by the operations manager to assess its inventory level. You have the following information on average inventories from last year's financial statement:
Raw materials $1,500,000
Work-in-process $1,200,000
Finished goods $800,000
In addition, the cost of goods sold last year (50 weeks) was $20 million.
a. What is its total inventory (measured as weeks of supply)?
b. What is its inventory turnover?

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Definitions:

Seminal Vesicles

Glands located near the prostate in males that produce fluid that is a component of semen.

GC

Gonococcus, a type of bacteria that causes gonorrhea, a sexually transmitted infection.

Seminiferous Tubules

Narrow coils of tubes within the testes where sperm is produced.

Epididymis

A tightly coiled tube situated behind each testicle, critical for the storage and transport of sperm.