Purchase Solution

Average Inventory

Not what you're looking for?

Ask Custom Question

93. A co. EOQ is 100 widgets, and it maintains a 50 unit safety stock. Which of the folowing is the co. average.

100 units
60
57.07
12.25
75

Purchase this Solution
Solution Summary

This explains the computation of average inventory

Purchase this Solution
Free BrainMass Quizzes
MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

View More Free Quizzes
Related BrainMass Solutions

  • Inventory Investment Calculations

    Average investment in inventory = COGS/inventory turnover Inventory turnover = sales/inventory Sales = $18,000,000 Gross profit margin = 32% COGS = 68% = 0.68*18,000,000 = $12,240,000 Average age of inventory = Inventory/Sales per day 45 = inventory

  • Inventory Policies

    Change in average inventory = average inventory in situation 2 - average inventory in situation 1 Change average inventory = {(EOQ)/2 + 400} - (EOQ)/2 = 400 This means there is increase in average inventory by 400 units Increase in total

  • Gross Profit Ratio, Inventory Turnover Ratio and Average Days

    Average days in inventory is 96 days in case of Saks and 84 days for Dilliards. Lower average days in inventory is better.

  • Inventory Turnover

    Inventory Turnover = COGS/Average Inventory =500000/2000000 =.25 times Note: Average Inventory= (Opening Inventory + Closing Inventory)/2 =(1000000+3000000)/2 =2000000 If the average turns in this same industry is 4x, is XYZ better or worse

  • Average Investment in Inventory

    The firm has a cost of goods sold figure of $480,000 and an average age of inventory of 40 days. Average investment in inventory = (Cost of goods sold/360) X average age = (480,000/360) X 40 = $53,333.33. b.

  • Quantitative analysis: EOQ

    level of average inventory, the formula is Average inventory = Q / 2 Where Q = EOQ from the EOQ formula.

  • McDonald's returns

    On the other hand, the average aggregate inventory value is the total value of all items held in inventory for the firm valued at cost. The restaurant sells an average of 4,000 quarter-pound hamburgers each week.

  • Inventory turnover and AR days

    Using the formula 4 = 320,000/Average inventory Average inventory = 320,000/4 = $80,000 b) How rapidly the accounts receivable are collected is the average collection period.

  • Firm's Inventory Level and Inventory Turnover Ratio

    Average inventory = 1000000 2 Average inventory = $500,000 2 If inventory turnover ratio is changed to 5 times, Inventory should be: Average inventory = 1000000 5 Average inventory = $200,000

  • Sample Solution: Linear optimization: Inventory Management

    = Average inventory*Price per unit*Finance rate $133.50 Property tax = Average inventory*Price per unit*Property tax $44.50 Insurance charges = Average inventory*Price per unit*Insurance charges $17.80 Total cost $715.80

View More Related Solutions