NEED HELP

The selling price of unit of a product is computed as follows;

                                                                                        Cost per unit

Raw material                                                                    Rs. 50

Direct labour                                                                           20

Factory OH (including depreciation of Rs. 10)                       20

Admn. OH (including depreciation of Rs. 5)                        10

Selling OH (including depreciation of Rs. 5)                        10

 Total                                                                                    110

Profit per unit                                                                          20

Selling price per unit                                                             130

 

Average raw material in stockfor one month. Average material in WIP is for half month. Credit allowed by supplier is one month and credit allowed to debtors is one month. Average time lag in payment of wages is 10 days. Average time lag in payment of overhead is 30-days. 25 percentage of the sales are on cash basis. Cash balance is approximately maintained at Rs. 1, 00,000. The finished goods lie in the warehouse for one month.

 

You are required to prepare the statement of working capital required to finance the level of activity of 54,000 units of output.

 

This is the Working Capital question from Financial Management. Please send me solution as early as possible.

Thanking you