2.
Proforma cost sheet of a company produces the following information
Materials
50%
Direct labour
10%
Overheads
10%
The following particulars are available:
a. Level of activity to be maintained 1,00,000 units
b. Selling price per unit 10
c. Raw materials are expected to be in the stores for an average of 2 months.
d. Materials will be in process on average of one month.
e. Finished goods are required to be in stock for an average of two month.
f. Credit allowed to debtors is three months
g. Credit allowed to suppliers is two months
Prepare a working capital budget.
Ans:
Stock of rawmaterials 83,333; Stock of work in progress 58,333;
Stock of finished goods 1,16,667; Debtors 1,75,000; Creditors 83,332;
Working capital 3,50,000.
don't put wrong answers.. plz
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