Document 44nBVvEL4Gr2rDqa7Gqx4pZZ1

Puerto Rico Inventory Values The inflated value of San Juan's inventories is explainable by examining product mix. Seven higher priced cost groups account for 47% of San Juan's total inventory value. These groups significantly effect the average. These groups reflect the fact that San Juan locally purchases alkyd paints and is involved in mixing operations. Detail is as follows: COST GROUP DESCRIPTION GALLONS VALUE UNIT PRICE 186 Locally pur. Flow Kote Latex Paint 5,505 $23,451 $ 4.26 187 Locally pur. Ovalite Enamel Paint 411 "Duco" Gloss 3,164 796 26,831 7,402 8.48 9.30 435 67 Line Primers for Emulsion Paints 754 7,072 9.38 472 2nd rine Cus. Col. House Pt. Lt. Base 910 6,024 6.62 473 " "" " " " Deep Base 1,171 5,673 5.70 798 Bennett Custom Color-Star Colorants TOTALS 257 12.557 4,806 18.70 $ 6.55 When these higher priced gallons are pulled out of total inventories we see the average price per gallon drop $.54 from $5.80 to $5.26. San Juan Inventory May, 1983 GALLONS VALUE AVERAGE PRICE PER GALLON Total Inventory Less Higher Priced Inventory Other Inventory Value 30,000 12,557 17,443 $174,000 82,259 $ 91.741 $5.80 6.55 The same analysis is true of Ponce's Warehouse inventory value. 92/uyy g . p. d e!eErR:s N36816 DUP050306589