4. P & G Ltd. furnishes below its cost and other data: Unit Cost ` Raw Material...
Question:
4. P & G Ltd. furnishes below its cost and other data:
Unit Cost `
Raw Material 30 Direct Labour 20 Overhead ?
Profit (25% on selling price) ?
Unit selling price 100 Additional information is as follows:
Average raw material:
In stock - 1 month In process -
1 2 month Credit allowed by suppliers -
1 1 2 month Credit allowed to debtors - 3 months Time lag in payment:
Wages -
1 2 month Overhead -
1 2 month Cash balance is assumed to be `1,00,000 and 70% of Sales are credit sales.
Assuming that production is carried on evenly throughout the year, you are required to determine the working capital requirement of the P&G Ltd. to achieve an output level of 1,20,000 units p.a.
Step by Step Answer:
Financial Management
ISBN: 9789352605606
1st Edition
Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana