6. Compute Working Capital Requirements from the following details: Budgeted Sales: 30,000 units per annum...
80.2K
Verified Solution
Link Copied!
Question
Accounting
6. 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 & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
