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Computation of Length of Operating Cycle
Computation of Length of Operating Cycle
Computation of Length of Operating Cycle
Total consumption of raw materials per annum Total production cost per annum Total cost of sales Sales during the year Value of stock maintained: Raw materials Work in progress Finished goods stock Calculate the operating cycle. Solution: Age of Raw materials Age of WIP = 32000 x 365 = 440000 = 35000 x 365 = 1000000 = 26000 x 365 = $1050000 = 48000 x 365 = $1600000 27 days 1 year of 365 days 16 days Rs.48,000 Rs.4,40,000 Rs.10,00,000 Rs.10,50,000 Rs.16,00,000 Rs.32,000 Rs.35,000 Rs.26,000
13 days
9 days