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On the overage a company has 12week of work-in-process (WIP) inventory and annual cost of goods sold of 36$ million. Assuming the company works 50 weeks per year.
What is the dollar value of the WIP?
Suggested Answer: A
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24 comments · newest first
TH
Theola
2 days ago
I’m leaning towards option A too.
SA
Santos
7 days ago
Sounds reasonable based on the choices.
JO
Joanne
12 days ago
I think it should be $4,32,000.
LA
Layla
17 days ago
Let’s check the options again.
TH
Theola
23 days ago
Maybe we miscalculated something.
SA
Santos
28 days ago
Wait, that’s not an option.
JO
Joanne
1 month ago
That gives us $8.64 million.
LA
Layla
1 month ago
Then, multiply by 12 weeks for WIP.
TH
Theola
1 month ago
That’s $720,000 per week.
SA
Santos
2 months ago
So, weekly COGS is $36 million divided by 50 weeks.
JO
Joanne
2 months ago
Right! Annual COGS is $36 million.
LA
Layla
2 months ago
I believe we need to find weekly COGS first.
TH
Theola
2 months ago
I feel confused about the options.
SA
Santos
2 months ago
I think it's about calculating WIP value.
JO
Joanne
2 months ago
This question is tricky.
RU
Ruby
3 months ago
I thought WIP was usually lower than that!
DY
Dyan
3 months ago
Totally agree, that math checks out!
ST
Stefania
3 months ago
Wait, are we sure about those numbers?
RO
Rocco
3 months ago
That's $8.64 million in WIP, right?
MA
Markus
3 months ago
WIP = (COGS / weeks) * WIP weeks = (36M / 50) * 12
ON
Onita
4 months ago
If the annual COGS is $36 million and we work 50 weeks, then the weekly COGS should be $720,000, right? So, what would that mean for the WIP?
VA
Vashti
5 months ago
I'm not entirely sure about the calculations, but I think we might need to multiply the weekly COGS by 12 weeks to get the WIP.
LE
Leonard
5 months ago
I remember a similar question where we had to find inventory values based on weeks of supply. It involved dividing the annual COGS by the number of weeks.
JO
Josephine
5 months ago
I think we need to calculate the weekly cost of goods sold first to find the WIP value.