A manufacturing company producing medical devices reported $108,000,000 in sales over the last year. At the end of the same year, the company had $48,000,000 worth of inventory of ready-to-ship devices. a. Assuming that units in inventory are valued (based on COGS) at $1,200 per unit and are sold for $2,400 per unit, what are the annual inventory turns? The company uses a 21 percent per year cost of inventory. That is, for the hypothetical case that one unit of $1,200 would sit exactly one year in inventory, the company charges its operations division a $250 inventory cost. (Round the answer to 2 decimal places.) . What is the per unit inventory cost in $ for a product that costs $1,200? (Round the answer to 2 decimal places.)
A manufacturing company producing medical devices reported $108,000,000 in sales over the last year
It is sold for $2,400 per unit
Therefore, number of units sold = Sales / selling price per unit
= $108,000,000 /$2,400
= 45,000 units
At $1,200 per unit cost of goods sold
Total cost of goods sold = total number of units sold * per unit cost of goods sold
= 45,000 * $1,200 = $54,000,000
At the end of the same year, the company had $48,000,000 worth of inventory of ready-to-ship devices
Assuming that units in inventory are valued (based on COGS) at $1,200 per unit
Therefore number of units in inventory = total inventory / per unit value of inventory
= $48,000,000 / $1,200
= 40,000 units
Annual inventory turns = Total Cost of goods sold (GOGS) / Inventory
=$54,000,000 / $48,000,000 = 1.125 or 1.13 turns
Total inventory cost for one turn = Inventory cost per unit * 21%
= $1,200 * 21% = $252 per unit
The per unit inventory cost = Total inventory cost for one turn/ Annual inventory turns
= $252 / 1.125 = $224.00
The per unit inventory cost is $224.00
A manufacturing company producing medical devices reported $108,000,000 in sales over the last year. At the...
A manufacturing company producing medical devices reported $108,000,000 in sales over the last year. At the end of the same year, the company had $42,000,000 worth of inventory of ready-to-ship devices. a. Assuming that units in inventory are valued (based on COGS) at $2,000 per unit and are sold for $4,000 per unit, what are the annual inventory turns? The company uses a 20 percent per year cost of inventory. That is, for the hypothetical case that one unit of...
A manufacturing company producing medical devices reported $50 million in sales over the last year. At the end of the same year, the company had $17 million worth of inventory of ready-to-ship devices. (Round your answer to 1 decimal place.) Assuming that units in inventory are valued (based on cost of goods sold) at $750 per unit and are sold for $2000 per unit, what is the company’s annual inventory turnover?
Williams & Sons last year reported sales of $108 million, cost of goods sold (COGS) of $90 and an inventory turnover ratio of 5. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Round your answer to the...
Williams & Sons last year reported sales of $16 million, cost of goods sold (COGS) of $12 and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Round your answer to the...
Inventory Management Williams & Sons last year reported sales of $44 million, cost of goods sold (COGS) of $36 and an inventory turnover ratio of 4. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Round your answer...
10 points Save As. Question 1 Over the last year, Cajood Corp. reported net sales of $25,813, accounts receivable of $2.951 Inventory of $1.749, and accounts payable of $1.320 The company's cost of goods sold has remained constanta 60% of sales for the last several years and is expected to remain so in the forseeable future. Based on these values, what is the company's days of sales in inventory (DST)? Round to two decimal places 000) Jestion 2 10 points...
Problem 16-01 Inventory Management Williams & Sons last year reported sales of $23 million, cost of goods sold (COGS) of $18 and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Round...
Pant Risers manufactures bands for self-dressing assistive devices for mobility-impaired individuals. Manufacturing is a one-step process where the bands are cut and sewn. This is the information related to this year's production: Units to Account For Units Materials Conversion Beginning work in process inventory 500 250 500 21,500 Started Total units to accounted for 22,000 Ending inventory was 100% complete as to materials and 60% complete as to conversion, and the total materials cost is $60,280 and the total conversion...
Pant Risers manufactures bands for self-dressing assistive devices for mobility-impaired individuals. Manufacturing is a one-step process where the bands are cut and sewn. This is the information related to this year's production: Units to Account For Units Materials Conversion Beginning work in process inventory 500 500 250 Started 20,500 Total units to accounted for 21,000 Ending inventory was 100% complete as to materials and 60% complete as to conversion, and the total materials cost is $57,750 and the total conversion...
The income statement for Huerra Company for last year is provided below: Total Unit Sales $ 43,200,000 $ 432.00 Less: Variable expenses 25,920,000 259.20 Contribution margin 17,280,000 172.80 Less: Fixed expense 8,640,000 86.40 Net operating income 8,640,000 86.40 Less: Income taxes @ 30% 2,592,000 25.92 Net income $ 6,048,000 $ 60.48 The company had average operating assets of $18,000,000 during the year. Required: 1. Compute the company’s ROI for the period using the ROI formula stated in terms of margin...