Reference no: EM132644679

Problem 1: Prepare working capital requirement from the following given information:

Annual production 104000 units.

Raw material Rs.80 Per Unit

Wages Rs.40 Per Unit (Payment made on 1st day of next month)

Overheads Rs.48 Per Unit(Including Depreciation Rs.4.00)

All types of material are kept in process on an average one month.

For work in process consider complete unit of raw material and 50% of other components.

Debtors are given credit for two months and creditors allow credit for payment a month.

Assuming that 50% of overheads are paid one month in advance prepare the required statement.