The average inventory at cost for the year for Media Industries was $162,300. Their cost of goods sold for the year was $738,400. The inventory turnover rate published for a business of this size is 5.2 times. a. Calculate the actual inventory turnover
rate at cost for the company. (Round your answer to the nearest tenth) b. If the turnover rate is below the industry average of 5.2 times, calculate the target average inventory needed to match the industry standard.
a. 4.5 times
b. $142,000
You might also like to view...
Papillon Co. has determined the following per unit amounts:
Direct materials $30 Fixed selling and administrative $60 Direct labor 36 Variable overhead 24 Desired ROI 33 Variable selling and administrative 15 Fixed overhead 45 The target selling price using the absorption-cost approach is a) $162. b) $371. c) $351. d) $243.
Which of the following is TRUE regarding a matrix-management organization?
A) It is a low-cost form of organization. B) It often creates conflicts regarding authority and responsibility for marketing activities. C) It hampers the flow of information among marketing personnel. D) It promotes the matrix concept throughout the company. E) It is best suited to companies that offer a small range of products to niche markets.