Question

Mattress​ Wholesalers, Inc. is constantly trying to reduce inventory in its supply chain. Last​ year, cost of goods sold was ​$7.537.53 million and inventory was ​$1.551.55 million. This​ year, costs of goods sold is ​$8.638.63 million and inventory investment is ​$1.631.63 million. ​a) What was its weeks of supply last​ year? nothing weeks ​(round your response to two decimal​ places).

Answer 1

Weeks supply = 10.70 million (Approx)

Step-by-step explanation:

Given:

Last​ year, cost of goods sold = ​$7,537.53 million

Last​ year Inventory = ​$1,551.55 million

Computation:

Average cost of sold good on week basis = Cost of goods sold / Total number of weeks

Average cost of sold good on week basis = $7,537.53 million / 52

Average cost of sold good on week basis = 144.96 million

Computation of weeks supply:

Weeks supply = Last​ year Inventory / Average cost of sold good on week basis

Weeks supply = $1,551.55 million / 144.96 million

Weeks supply = 10.70 million (Approx)