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Problem 3 Arvind Ltd. supplies the following information's for calculating the working capital. Firm levels of activity of Rs. 2,40,000 units. The cost structure particulars
Problem 3 Arvind Ltd. supplies the following information's for calculating the working capital. Firm levels of activity of Rs. 2,40,000 units. The cost structure particulars are: Cost Per Unit (Rs.) Raw materials Direct labour Over-heads 20 Total Profit Selling price (a) Raw materials are in store on average for 1 month. (b) Work in process (100% complete in regard to materials and 50% for labour and overheads for half a month's production. (c) Finished goods remain in godown on average for a month. (d) Suppliers one month to customers 2 months (calculation of customers may be made on selling price). (e) Minimum cash balance required is Rs. 30,000. (f) The production is evenly throughout the year. (Ans: 46,80,000) Problem 4 A company Ltd. supplies the following cost sheet: Element of cost Raw material 45% Labour - 15% Overheads - 25% The following further particulars are available. (i) Raw materials remain in shares 5 weeks. (ii) Cash in processing 4 weeks. (iii) Finished goods in own house 6 weeks. RRAW opg ARRAW
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