Option c : 39.37
Weeks of Supply = On Hand Inventory / Average Weekly Units Sold.
On Hand Inventory = Raw Material + Work in Process + Finished Goods Inventory = $150,000 +$50,000 $330,000 = $530,000.
Average Weekly units sold = Cost of Goods Sold / 52 Weeks = $700,000 / 52 = 13,461.54.
Weeks of Supply = $530,000 / 13,461.54 = 39.37.
Note : Please comment down for any further clarifications.
The following data are pulled from a recent Walsh Manufacturing annual report. Assets Raw material inventory...
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