The cost sheet of PQR is as under Raw Material Direct Labour Over Heads Including Depreciation of Rs 10 Total Profit SP Rs 50 Rs 20 Rs 40 Rs 110 Rs 20 130 Average Stock of Raw Material, WIP, Credit Allowed to debtors, Credit allowed by creditors lag in payment of wages, overheads and Avg finished goods is 1 month 25% of sales are cash sales You may assume that minimum cash balance to be Rs one lakh. Estimate the working capital for 54000 units of output

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Ef 283

The cost sheet of PQR is as under
Raw Material
Direct Labour
Over Heads Including Depreciation of Rs
10
Total
Profit
SP
Rs 50
Rs 20
Rs 40
Rs
110
Rs 20
130
Average Stock of Raw Material, WIP, Credit Allowed to debtors, Credit allowed by creditors lag in
payment of wages, overheads and Avg finished goods is 1 month
25% of sales are cash sales
You may assume that minimum cash balance to be Rs one lakh.
Estimate the working capital for 54000 units of output
Transcribed Image Text:The cost sheet of PQR is as under Raw Material Direct Labour Over Heads Including Depreciation of Rs 10 Total Profit SP Rs 50 Rs 20 Rs 40 Rs 110 Rs 20 130 Average Stock of Raw Material, WIP, Credit Allowed to debtors, Credit allowed by creditors lag in payment of wages, overheads and Avg finished goods is 1 month 25% of sales are cash sales You may assume that minimum cash balance to be Rs one lakh. Estimate the working capital for 54000 units of output
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