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Arisa [49]
3 years ago
12

A manufacturing company producing medical devices reported $60 million in sales over the last year. At the end of the same year,

the company had $20 million worth of inventory of ready-to-ship devices. Assuming that units in inventory are valued (based on cost of goods sold) at $1000 per unit and are sold for $2000 per unit, what is the company’s annual inventory turnover?
Business
1 answer:
Svetradugi [14.3K]3 years ago
8 0

Answer:

Annual average inventory in days (no of times) = 1.5 times

Explanation:

<em>Annual inventory turn over is the average length of time it takes for inventor to be sold and replaced.</em>

<em>Average inventory turnover = average inventory/ cost of sold × 365</em>

<em>Average inventory turnover (in No of  times) = C</em>ost of sold sold /average inventory

Cost of goods sold

= (1000/2000) × 60 million

= $30 million

Closing Inventory = $20 million

Annual average inventory

= $20/ 30 × 365 days

= 243.days

Annual average inventory

= cost of sold sold /average inventory

=30/20

= 1.5 times

Annual average inventory in days =  243.days

Annual average inventory in days (no of times) = 1.5 times

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3 years ago
LO 6.2What is the advantage of labeling activities as value added or nonvalue added?
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The appropriate journal entry is:Debit Cash $1313; debit Sales Discount $39; credit Accounts Receivable $1352.

<h3>Journal entry</h3>

Based on the information given the correct entry to record this transaction is:

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