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A proforma cost sheet of a company provides the following data:
RO
Cost (per unit)
Raw materials
52.0
Direct Labour
19.5
Overheads
39.0
Total Cost (per unit)
110.5
Profit
Selling Price
130.0
The following is the additional information available:
Average raw material in stock : One Month
Average materials in process : Half Month
Credit allowed by suppliers : One Month
Credit allowed to debtors : Two Month
Time lag in payment of wages : 10 Days
Overhead : One Month
One fourth of sales are cash basis.
Cash balance in expected to be RO 120,000/-.
(Month = 30 Days)
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