Question

One Builder constructs modular homes, and last year their cost of goods sold was $18,500,000. It operates 50 weeks per year. The company has the following on-hand inventory of raw materials, work-in-process, and finished goods.

What is the number of inventory turns? Round to 2 decimal places.

Answer 1

The number of inventory turns is found by dividing the cost of goods sold by the average inventory. Without the average inventory figure, we cannot calculate the exact number of inventory turns.

Step-by-step explanation:

The question seeks to calculate the number of inventory turns for a builder that constructs modular homes. To find the inventory turnover ratio, we would need the cost of goods sold (COGS) and the average inventory for the period. However, the average inventory figure is not provided in the question. Typically, the inventory turnover is calculated using the formula: Inventory Turns = COGS / Average Inventory. Assuming the average inventory is given, you would divide $18,500,000 by the average inventory and round to two decimal places to get the inventory turns.

It is important to note that since we do not have the actual inventory numbers, we are unable to provide a precise inventory turns figure.