The cost sheet of POR Ltd. Provides the following data : Cost per unit Raw materials Rs. 50 Direct Labor 20 Overheads (including depreciation of Rs.10) 40 Total cost 110 Profits 20 Selling price 130 1) a) Average raw material in stock is for one month. b) Average materials in work in progress is for half month. c) Credit allowed by suppliers; one month; d) credit allowed to debtors; one month. e) Average time lag in payment of wages; 10 days; f) average time lag in payment of overheads 30 days 2) 25% of the sales are on cash basis. 3) Cash balance expected to be Rs.1,00,000 4) Finished goods lie in the warehouse for one month. You are required to prepare a statement of the working capital needed to finance a level of the activity of 54,000 units of output. Production is carried on evenly throughout the year and wages and overheads accrue similarly. Debtors are to be valued at cost.

Answers 1

Answer:

Cash balance expected to be Rs 1,00,000

If you know the answer add it here!

Can't find the answer?

Log in with Google

or

Forgot your password?

I don't have an account, and I want to Register

Choose a language and a region
How much to ban the user?
1 hour 1 day 100 years