orking details of Stockholm ltd for ensuring year is given below Production for the year 69000 units Finished Goods in the store 3 months Raw material in store 2 months Production Process 1 month Credit allowed by creditors 2 months Selling price per unit Rs50 Raw material 50% of selling price per unit Direct Wages 10 % of selling price per unit Overheads 20 % of selling price There is a regular production and sales cycle a

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter9: Responsibility Accounting And Decentralization
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Problem 8EA: Using the information in the previous exercises about Marleys Manufacturing, determine the operating...
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Working details of Stockholm ltd for ensuring year is given below

Production for the year

69000 units

Finished Goods in the store

3 months

Raw material in store

2 months

Production Process

1 month

Credit allowed by creditors

2 months

Selling price per unit

Rs50

Raw material

50% of selling price per unit

Direct Wages

10 % of selling price per unit

Overheads

20 % of selling price


There is a regular production and sales cycle and wages and overheads accrued evenly , wages are paid in the next month accrual , material is introduced in the beginning of production cycle.

i) Find out Working capital finance

 

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