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Aggregate Inventory Value

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June 17th, 2023

Problem is attached

Beagle Bum, Inc. operates 52 weeks per year and its cost of goods sold last year was $6,500,000. The firm carries eight items in inventory: four raw materials (RM), two work-in-process (WIP) items and two finished goods (FG). Last year’s average inventory levels for these items along with their unit values are shown in the table below. Answer the following questions:
Beagle Bum, Inc.
Category Part Number Average Inventory (units) Value ($/unit) Total Value ($)
Raw materials (RM)
RM-1 25,000 $1
RM-2 5,000 6
RM-3 3,000 4
RM-4 1,500 8
Work-in-process (WIP)
WIP-1 6,000 $10
WIP-2 8,500 12
Finished goods (FG) )
FG-1 1,000 $65
FG-2 500 90
Total:

a. What is the aggregate inventory value?
b. What is the average weekly sale at cost?
c. How many times does Beagle Bum turn its inventory turnover per year?

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