Use the Following Figures (Stated in Millions of Dollars)to Compute

question 12

Short Answer

Use the following figures (stated in millions of dollars)to compute the inventory
turnover and the days' inventory on hand: (Round answers to one decimal place).
$\begin{array}{llr} \text { Cost of goods sold: } & \$ 6,584\\ \text { Beginning inventory: } &\$ 915\\ \text { Ending inventory:} & \$ 1,177 \end{array}$

a. Inventory turnover = ___________________
b. Days' inventory on hand = ___________________

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Definitions:

Baker's Wages

The compensation paid to individuals who are employed to bake goods, usually considered a variable cost in the production process.

Direct Labor

The workforce directly involved in manufacturing goods or providing services, whose wages are considered part of the cost of goods sold or cost of services.

Factory Overhead

The total indirect costs associated with manufacturing, excluding direct labor and direct materials.

Direct Materials

Raw materials that can be directly attributed to the production of finished goods in a manufacturing process.