Cost sheet, Financial Management

Assignment Help:

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

19.5

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)

You are requested to prepare a statement showing the working capital needed to finance a level of activity of 70,000 units of output. You may assume that production is carried on evenly throughout the year and wages and overheads accrue similarly.

 


Related Discussions:- Cost sheet

Calculation of wmcc, Q. Calculation of WMCC? The calculation of WMCC re...

Q. Calculation of WMCC? The calculation of WMCC requires several steps to be taken and is subject to the following assumptions: 1) The WMCC is calculated on the basis of market

Explain why the company would probably not issue $1 million, Refer to the B...

Refer to the Bulldog battery company's cash budget in Table 18-7.  Explain why the company would probably not issue $1 million worth of new common stock in January to avoid all sho

Illustrate the zero bonds security instruments, Illustrate the zero bonds s...

Illustrate the zero bonds security instruments. Zero coupon bonds are instruments under that a borrower promises, at the recent time, to pay one exact nominal sum (face value)

Explain why warrants are rarely exercised, Explain why warrants are rarely ...

Explain why warrants are rarely exercised unless the time to maturity is small? Warrants are hardly ever exercised until the time to expiration is small because the market pric

Financial bootstrapping, Briefly describe the major differences between a s...

Briefly describe the major differences between a sole proprietorship and a corporation. Under which form would you choose for a business, and why? Describe the meaning of financi

Investment opportunities in capital budgeting process, Briefly examine the ...

Briefly examine the significance of identification of investment opportunities in capital budgeting process

Explain the various types of l/c, Question 1 Describe briefly the various ...

Question 1 Describe briefly the various terms of payment available to an exporter and importer. Explain any one method in detail Question 2 A documentary letter of credit is

Features of treasury bills, Features of Treasury Bills Treasury Bills a...

Features of Treasury Bills Treasury Bills are short-term, rupee denominations issued by the Reserve Bank of India (RBI) on behalf of the Government of India. T-bills are issued

Zero-coupon bonds, All the bonds are not making periodic coupon payments. ...

All the bonds are not making periodic coupon payments. Zero-coupon bonds are those bonds where the bondholder realizes interest by buying it at a deep discount to its face

Re-order point - technique of inventory management, Q. Re-order point - tec...

Q. Re-order point - technique of inventory management? Re-order point: - The re-order point is that stock level at which an order should be placed. Mutually the excessive and i

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd