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).

Question

Business

Mercedes Mathews

11 December, 04:44

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).

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Answers (1)

Know the Answer?

Allan Haynes · Answer 1

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