Transcribed Image Text: 00:35 1 @ O Problem 5 A proforma cost sheet of a company provides the following particulars: Elements of Cost Amt. Per Unit (Rs.) Raw Materials

Transcribed Image Text: 00:35 1 @ O

Problem 5
A proforma cost sheet of a company provides the following particulars:
Elements of Cost
Amt. Per Unit (Rs.)
Raw Materials
140
Direct Labours
60
Overheads
70
270
Total Cost
Profit
Selling Price
Further particulars available are:
30
300
Raw materials are in stock on an average for one month. Materials are in process on an
average for half a month. Finished goods are in stock on an average for one month.
Credit allowed by suppliers is one month – credit allowed to customers is two months. Lag in
payment of wages is 1.5 weeks. Lag in payment of overhead expenses is one month. One
fourth of the output is sold against cash. Cash in hand and at bank is expected to be Rs.
50,000.
You are required to prepare a statement showing the working capital needed to finance, a
level of activity of 2,40,000 units of production. You may assume that production is carried
on evenly throughout the year, wages and overhead accrue similarly and a time period of 4
weeks is equivalent to a month.
Note: Year – 4×12- 48 weeks

A
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