Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:SuperStar company operates 50 weeks per year, and its cost of goods sold last year was $2,000,000.
The firm carries four items in inventory: two raw materials, two work-in-process items. The following
table shows last year's average inventory levels for these items, along with their unit values.
Part
Number
RM₁
RM₂
WIP₁
WIP₂
7.175
4.175
6.175
Average
5.175
Inventory (units) Value ($/unit)
15,000
10,000
5,000
6,000
How many weeks of supply does the firm have?
3.00
5.00
8.00
12.00
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