Question

6. Compute Working Capital Requirements from the following details:
Budgeted Sales: 30,000 units per annum
Rs.
Raw material cost per unit
Direct labour per unit
Overhead per unit
10
8
2
Total cost per unit
Profit per unit
20
2.
22
Selling price per unit
Additional Information:
i.
ii
Raw material will be carried in stock for 4 weeks and finished goods for 2 weeks.
Factory processing will take on an average 3 weeks
Suppliers provide 6 weeks credit; and
Debtors are allowed 8 weeks credit
iv.
Assume labor and overhead expenses to accrue evenly throughout the production cycle.​

Answer 1

Explanation:

jsjdjdjdjdxujxjzssssjsjswwnwnsnzjxjx