1. Akers Inc. maintains average inventory of $1,000,000 (at cost). Last year, Akers' sales volume was $10,000,000 and cost of goods sold was $7,000,000. Akers has determined that its inventory carrying cost is 15 percent annually. What was the inventory turnover rate? How much was the inventory carrying cost for the year?
2. The following table contains data about the inventory for five items at Jones Corporation. Complete the missing items in the table.
|
Item #
|
Beginning Unit Inventory
|
Ending Unit Inventory
|
AverageUnit Inventory
|
Annual Unit Sales
|
InventoryTurnover
|
|
1
|
150,000
|
120,000
|
|
400,000
|
|
|
2
|
40,000
|
60,000
|
|
80,000
|
|
|
3
|
85,000
|
97,000
|
|
190,000
|
|
|
4
|
200,000
|
170,000
|
|
350,000
|
|
|
5
|
50,000
|
60,000
|
|
165,000
|
|
|
Total
|
|
|
|
|
|