A proforma cost sheet of a company provides the following particulars: Raw material cost per unit is Rs 80. Direct labour is Rs 30 per unit, overheads is Rs 60 per unit. The total cost is Rs 170 per unit. profit per unit is Rs 30 and selling price is Rs 200 per unit. The following additional information is available: 1.Raw materials are in stock on an average for one month. 2. Materials are in process on an average for half a month. 3. Finished goods are in stock on an average for one month. 4. Credit allowed by suppliers is one month. 5. Credit allowed to customers is two months. 6. Lag in payment of wages is 1 month. 7. Lag in payment of overhead expenses is one month. 8. One-fourth of the output is sold against cash. Cash in hand and at bank is expected to be Rs.25,000. You are required to prepare a statement showing the working capital needed to finance a level of activity of 1,04,000 units of production. You may assume that production is carried on evenly throughout t
he year, wages and overheads accrue similarly and assume 12 months in a year.
Answers
Answer:
sorry don't know the answer exactly.
Explanation:
Statement Showing the Working Capital Noted 6.10.000 3.20,000 60,000 1,20,000 5.00.00 Stock of raw material ( 4 weeks ) 160.000 x 4 Work - in - Process ( 2 weeks ) : Raw materials 1.60,000 x 2 Direct labour 60,000 x 2 x 50/100 Overheads 1,20,000 x 2x 50/100 i Stock of Finished goods ( 4 weeks ) : Raw materials 1,60,000 x 4 Direct labout 60,000 x 4 Overheads 1.20,000 x 4 Viel Sundry Debtors ( 8 weeks ) : Raw materials 1,60,000 x 3 / 4x8 Direct labour 60,000 x 3 / 4x8 Overheads 1,20,000 x 3/4 x 8 in Cash in hand and at bank ( given ) 6,40,000 240,000 4,80.000 13.60.000 9,60,000 3,60,000 720.000 20,40.000 25,000 15,65.000 Les Current Liabilities : Sundry creditors ( 4 weeks ) 1,60,000 x 4 @ Wages outstanding ( 1-1 / 2 weeks ) : 60,000 6,40,000 90,000 4,80.000 fuii ) Lag in payment of overheads ( 4 weeks ) 1,20,000 x 4 Net Working Capital Needed 12.10.000 33,55.000