Suppose a company has a sale of Rs. 200,000 for the year. The cost structure is given as follows: Raw materials is 60% of sales, labour s 15% of sales, overheads is 10% of sales. The profit is 15% sales and total cost is 85% sales. What is the amount of current assets for the year if the holding periods are as follows: Raw material 15 days, work in progress 7 days, finished goods 15 days and debtors 30 days. Assume 365 days in a year. Group of answer choices Rs.35679 Rs.25789 Rs.41907 Rs 31137
Suppose a company has a sale of Rs. 200,000 for the year. The cost structure is given as follows: Raw materials is 60% of sales, labour s 15% of sales, overheads is 10% of sales. The profit is 15% sales and total cost is 85% sales. What is the amount of current assets for the year if the holding periods are as follows: Raw material 15 days, work in progress 7 days, finished goods 15 days and debtors 30 days. Assume 365 days in a year. Group of answer choices Rs.35679 Rs.25789 Rs.41907 Rs 31137
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Suppose a company has a sale of Rs. 200,000
for the year. The cost structure is given as
follows: Raw materials is 60% of sales, labour
is 15% of sales, overheads is 10% of sales. The
profit is 15% sales and total cost is 85% sales.
What is the amount of current assets for the
year if the holding periods are as follows: Raw
material 15 days, work in progress 7 days,
finished goods 15 days and debtors 30 days.
Assume 365 days in a year.
Group of answer choices
Rs.35679
Rs.25789
Rs.41907
Rs.31137
Rs.40000
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