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Question: A manufacturer would like to reduce its inventory. You are asked to assess its inventory level. You have the following information on average inventories from last year's financial statement: Raw materials $1,600,000 Work-in-process $1,100,000 Finished goods $900,000 The cost of goods sold last year (50 weeks) was $20 million.
a. What is its total inventory (measured as weeks of supply)?
b. What is its inventory turnover?
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