A Television Manufacturer Would Like to Reduce Its Inventory $\$ 1,500,000$

Essay

A television manufacturer would like to reduce its inventory. To this end, you are asked by the operations manager to assess its inventory level. You have the following information on inventories form last year's financial statement:
Raw materials $\$ 1,500,000$
Work-in-process $\$ 1,200,000$
Finished goods $\$ 800,000$

In addition, the cost of goods sold last year (50 weeks) was $20 million.
a. What is their total inventory (measured as weeks of supply)?
b. What is their inventory turnover?