Question

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

Answer 1

Answer:

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