Answer:
69.77 days
Explanation:
days' sales in inventory = number of days in a period/ inventory turnover
inventory turnover = Cost of goods sold / average inventory
Inventory turnover = $11,221 / $2,145 = 5.231235
days' sales in inventory = = 365 / 5.231235 million = 69.77 days
Answer:
purchase order
Explanation:
a document that authorizes a supplier to deliver a product or service is known as a purchase order is the purchased cost of goods from outside suppliers cost of goods sold is used when requirements are well understood and there is common agreement between supply chain partners about what certain terms mean
Answer:
$17,835.90
Explanation:
Currently Hodgkiss is operating at 92% of its fixed asset capacity, so they have an spare 8% to grow without adding any more fixed assets: ($780,000 / 92) x 100 = $847,826.09.
So they need to add fix assets in to increase its production by $32,173.91 (= $880,000 - $847,826.09).
Every dollar spent in fixed assets generates at full capacity $1.8039 in production output (= $847,826 / $470,000).
If they want to increase production by $32,174, they will need to spend $17,835.90 in fixed assets.
