Estimation of current assets, Financial Management

What is Estimation of Current Assets? Please provide me report on Estimation of Current Assets. It is about 2000 words count report on topic Estimation of Current Assets.

Posted Date: 2/14/2013 1:35:09 AM | Location : United States





Estimation of Current Assets

Current assets estimation includes:

  1. Raw materials Requirement cost

This is computed by multiplying the daily requirement by the age of raw materials. Assume if the raw material cost is $5 per unit and the company expects to produce and sell 36000 units in the coming year and the age of raw materials is 45, raw materials requirement cost would be = Daily requirement x Age of raw materials.

Raw Materials requirement cost =    (36000 x $5 x 45) / 365 = $22,192

  1. Work-in-Progress stock requirement cost

This is computed by multiplying the daily requirement of various sub-components of WIP by the age of WIP (Work in progress). Suppose if the Raw material cost is $5 per unit and where as wages is $4 per unit and production overhead is $4 per unit and the age of WIP is 30 days, the WIP (Work in progress) stock requirement cost would be: (36000 units per year)

Raw material component  = 36,000 x $5 x 30 /365   =   $14,795

Wages (Direct labor) Component =  36,000 x $4 x 30 / 365    =   $11,836

Production overhead component = 36,000 x $4 x 30 / 365    =   $11,836

Total WIP requirement cost = $38,467

Posted by Harry | Posted Date: 2/14/2013 1:38:44 AM


Related Discussions:- Estimation of current assets, Assignment Help, Ask Question on Estimation of current assets, Get Answer, Expert's Help, Estimation of current assets Discussions

Write discussion on Estimation of current assets
Your posts are moderated
Related Questions
Q. Drawbacks or Criticism of MM Approach? Risk Perceptions of personal as well as corporate leverages are different: - It is incorrect to presume that 'personal leverage' is a

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Evaluate the importance of leverage of financial management on a small scale company.

How can a price ceiling make consumers better off?  Under what conditions might it make them worse off? If the supply curve is completely inelastic a price ceiling will raise c

Previous MOS = 750 - 270 = 480 aircraft; Revised MOS = 750 - 420 = 330 aircraft Explanation that a lower MOS = lower levels of profit and therefore exposes the business to more

Profit Maximisation Decision Criterion According to this approach, actions which increase profits must be undertaken and those that decrease profits are to be avoided. In speci

i need help writing a paper on a healthcare organization and reviewing its financial operations based on data available from 6 sources

I want to see the solution that was provided in Feb 2013 for Calculate the new interest rate and excel function pv, Financial Accounting

You have recently won the UniSA "log tossing" competition. The prize of $200 is supposed to be used to buy a 50-year subscription to "Log News" This appears to represent a consid

Norfolk Ltd is specialized in producing & selling air conditions.  In 2010, the manufacturing cost per unit included: