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I detailed answer I'll upvote I need I detailed answer I'll upvote 11. XYZ Ltd. supplies the following information: Sales and production for the year's
I detailed answer I'll upvote
I need I detailed answer I'll upvote
11. XYZ Ltd. supplies the following information: Sales and production for the year's Finished goods in store Raw material in store Production process Credit allowed by creditors Selling price per unit Raw material Direct wages Overheads 69000 units 3 months 2 months consumpHon 1 month 2 months Rs.50.OO Of selling price 10% of selling price 20% of selling price 11 15 20 23 24 26 30 31 32 33 34 35 36 37 41 46 20% of sales are on cash basis and credit allowed to customer for 1 month. Overheads include Rs.5 as depreciation. This is regular production and sale cycle and wages and overhead accrue evenly. Wages are paid in the next month on accrual and overhead are pai d 15 days in arrears. Material is introduced in the beginning of production cycle. You are required to find out its working capital requirement on cash cost basis. CURRENT ASSETS WIP WAGES OVERHEAD Finished Goods CURRENT ASSETS LESS : CL CREDITORS WAGES OVERHEADS CA CL ADD: SAFETY MARGIN note Statement Of working capital requirement 287500 WIP is considered at 50% completion stagel 143750 14375 14375 603750 161000 1224750 287500 28750 14375 330625 894125 89412.5 983537.5
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