Question

Mattress​ Wholesalers, Inc. is constantly trying to reduce inventory in its supply chain. Last​ year, cost of goods sold was ​$7.547.54 million and inventory was ​$1.481.48 million. This​ year, costs of goods sold is ​$8.618.61 million and inventory investment is ​$1.581.58 million. ​a) What was its weeks of supply last​ year? nothing weeks ​(round your response to two decimal​ places).

Answer 1

Answer:

The weeks of supply last​ year is $10.20

Explanation:

(A) For computing the weeks of supply last year, first, we have to compute the weekly supply of cost of good sold which is shown below:

Weekly supply of cost of good sold = (Cost of good sold) ÷ (total number of weeks in a year)

= $7.547.54 million ÷ 52 weeks

= $145.145 million

Now the weeks of supply last​ year is calculated by

= (Inventory) ÷ (weekly cost of good sold)

= ($1.481.48 million) ÷ ($145.145 million)

= $10.20