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musickatia [10]
3 years ago
5

A company reports the following: Cost of goods sold $660,000 Average inventory 60,000 Determine (a) the inventory turnover and (

b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year.
Business
2 answers:
maria [59]3 years ago
4 0

Answer:

(a) Inventory turnover = $11

(b) Total number of days = 33.2 days

Explanation:

We have given cost of goods sold (COGS) = $660000

Average inventory = 60000

(a) We have to find inventory turnover

Inventory turnover is given by

inventory\ turn\ over=\frac{COGS}{average\ inventory}=\frac{660000}{60000}=11$

(b) Number of days sales in inventory = =\frac{365}{inventory\ turnover}=\frac{365}{11}=33.2days

USPshnik [31]3 years ago
3 0

Answer: Inventory Turnover 11

Number of days' sales in inventory 33.2 days

Explanation:(a) Inventory turnover= Cost of goods sold/Average inventory

=$660,000/$60,000

=11.0

(b)Number of days' sales in inventory= Average inventory/Average daily cost of goods sold

=$60,000/ ($660,000/365 days) = $60,000/ $1,808.21

=33.2 days

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gogolik [260]

Answer:

Logistics

Explanation:

Logistics is the process of managing the movement of merchandise or resources from their point of origin to the intended consumer.  Logistics in an organization is the management of mobility and storage activities undertaken by the company. Logistics management will involve the identification of distributors and suppliers of the company's products.

Poor logistics will hurt business performance. If the company's products are not available for consumers to buy,  low sales will be realized. An inefficient logistics system will make company products expensive.  As a result,  the company's goods becomes uncompetitive in the market.

8 0
3 years ago
2. Pure Water is considering buying new production equipment. The new equipment will increase fixed costs by $200,000 per year a
BARSIC [14]

Answer and Explanation:

The computation is shown below:

But before that we need to do the following calculations which are shown below:

The Contribution per unit of faucet is

= $75 - $15

= $60

And, the Contribution per unit of pitcher filter is

= $100 - $30

= $70

Now Contribution per unit in present sales mix is

= [($60 × 2) + ($70 × 3)] ÷ 5

= ($120 + $210) ÷ 5

= $66 per unit

And

The Fixed cost is

= $1,000,000 + $200,000

= $1,200,000

Now  

Break even units is

= $1,200,000 ÷ $66 per unit

= 18,181.81 units

For faucet, it is

= (18,181.81 × 2) ÷ 5

=  7,272.72 units

For pitcher filter, it is

= (18,181.81 × 3) ÷ 5

= 10,909.086 units

4 0
3 years ago
Which of the following is an indirect manufacturing cost in a manufacturing company?
AnnyKZ [126]

Answer:

d

Explanation:

Indirect costs are costs of production that cannot be directly linked to a unit, activity or product.

Indirect manufacturing costs are cost of production that cannot be directly linked to a good that is produced.

Examples of indirect manufacturing cost include :

  • Indirect Materials
  • utility
  • machine maintenance  
  • Real estate taxes on the factory
  • Depreciation
  • Salary of production floor manager

3 0
3 years ago
Flitter reported net income of $17,500 for the past year company had $200,000 in assets and $50,000 in liabilities. By the end o
lozanna [386]

Answer:

A) 7.0%

Explanation:

Average total Assets = (Opening Assets + Closing Assets) / 2

Average total Assets = (200,000 + 300,000) / 2

Average total Assets = $250,000

Formula for return on assets:

Return on assets = Net Income /Average total Assets

Return on assets = 17,500 / 250,000

Return on assets = 0.07

Return on assets = 7%

Correct option is A) 7.0%

7 0
3 years ago
A company purchases a piece of equipment on January 1, 2021, for $70,000 and the equipment has an expected useful life of five y
gizmo_the_mogwai [7]

Answer:

$36,000

Explanation:

Calculation for the balance in accumulated depreciation for the equipment as of December 31, 2023 will be:

Using this formula

(Equipment - Estimated residual value)÷ Expected useful life

Let plug in the formula

($70,000 − $10,000) / 5 years

$60,000/5

= $12,000 depreciation per year.

Calculation for the Accumulated depreciation will be:

Depreciation per year× Number of years

= $12,000 × 3 years

= $36,000.

Therefore the balance in accumulated depreciation for the equipment as of December 31, 2023 will be: $36,000

3 0
4 years ago
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