Question

1. Please see inventory related information for Dell and HP in the year 2012 below:

Types of inventory	Dell	HP
Cost of Goods Sold	$10,345	$21,820
Production materials (PARTS)	$750	$3,190
Work in process inventory (WIP)	$400	$2,585
Finished goods inventory (FGI)	$465	$1,517

1. Calculate the days of supply for Dell and HP? (1 POINTS)

2. HP recently undertook an initiative to be more efficient with their cash. What should be the TOTAL inventory costs (PARTS+WIP+FGI) for HP to have the same number of inventory turns as Dell? (Assume that COGS remains the same and they proportionally cut the inventory costs). (1 POINTS)

Answer 1