What is the BOM (beginning of the month inventory) for August, November, and January? Formulas: BOM=Net Sales (NS) x Stock to Sales (S/S) S/S=BOM/Net Sales (NS) Net Sales=BOM/Stock to Sales...

What is the BOM (beginning of the month inventory) for August, November, and January?

Formulas:

BOM=Net Sales (NS) x Stock to Sales (S/S)

S/S=BOM/Net Sales (NS)

Net Sales=BOM/Stock to Sales (S/S)

Asked on by yacel0762

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justaguide | College Teacher | (Level 2) Distinguished Educator

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The Beginning of the month inventory (or BOM) is related to the Net Sales, Stock to Sales, Net Sales by the relation BOM = (Net Sales)*(Stock to Sales).

All the formulas given for BOM, Stock to Sales and Net Sales in terms of the other two variables can to converted to the same equation that has been given earlier.

To determine the beginning of the month inventory, net sales as well as stock to sales for the month are required.

Looking at the data provided in the table, only for the month of November is the Net Sales and the Stock of Sales ratio given. Using this the BOM for November is 225*3.6 = 810

The data is insufficient to estimate the value of BOM for August and January.

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