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retownes retownes
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4 years ago
The following data are pulled from a recent Walsh Manufacturing annual report.

Assets
Raw material inventory   $120,000
Work-in-process inventory   $50,000
Finished goods inventory   $300,000
Property, plant & equipment   $500,000
Other assets     $200,000
Total assets   $1,170,000

Condensed Income Statement
Revenue   $2,000,000
Cost of goods sold   $600,000
Other expenses   $1,000,000
Net income   $400,000

Calculate: (a) Percent invested in inventory, (b) Inventory turnover, and (c) Weeks of supply.
Textbook 

Operations Management


Edition: 10th
Authors:
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kadajikadaji
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4 years ago
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More questions for this book are available here
(a)   Percent invested in inventory = (120,000 + 50,000 + 300,000)/1,170,000 = 40.17%
(b)   Inventory turnover = 600,000/(120,000 + 50,000 + 300,000) = 1.28
(c)   Weeks of supply = (120,000 + 50,000 + 300,000)/(600,000/52) = 40.73
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