Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 1

15.

a. Inventory turnover ratio = Cost of goods sold / Average Aggregate Inventory Value
= $322,000 / $42,500 + $37,000 + $12,500 = $322,000 / $92,000 = 3.5
Therefore, the inventory turnover ratio is 3.5
b. Weeks of supply = (Average Aggregate Inventory Value / Cost of goods sold) * 52 weeks
= ($42,500 + $37,000 + $12,500 / $322,000) *52 weeks = 14.85 weeks
Therefore, the weeks of supply is 14.85 weeks

You might also like