Illustration 26

Cost Structure
Particulars 2016-17 2017-18
Raw Material 120 100
Labour 90 90
Manufacturubg Overheads 80 88
Adminstration and selling
overheads 30 33
Total cost 320 80 311
Profit 80 20 89
Sales 400 100 400

Annual Production 72,000

Per month 72,000/12 6,000
Statement of working capital

Sr. no Particulars Working Amount

A CURRENT ASSETS
1) Stock
Raw material 6000 X 100 X 1
Work-in-progress
Raw material 6000 x 100 x 0.25 150,000
Wages 6000 x 90 x 0.25 x 50% 67,500
Overheads 6000 x 88 x 0.25 x 50% 66,000
Finsished Goods 6000 x 278 x 0.5
2 Debtors 6000 x 400 x 0.5 x 40%
3 Cash Balance
Total current assets (A)

Current
Outstanding wages
Outstanding manufacturing overheads
Outstanding administration overheads

Cost Structure

RM 20
DL 10
Other DC 5
General overhead 5
S&D 5
Total cost 45
Profit 5
SP 50
(80+8)

30+3

Amount

600,000

283,500
834,000
480,000
75,000
2,272,500
Iln No : 10

Cost Structure
Rs. Full year 260,000
Raw Material 1/3 x 15 5 Per week 2,60,000/52
Wages 6 3 5000 units per week
Overheads 4 2
Total Cost 10
(+) Profit 5
Sales 15

M/s Alpha
Statement of working capital for the year ended 31st March, 2017

Sr. No Particulars Working Amount Amount

A Current Assets Units x rate x period
1 Stock
a) Raw Material 5000 x 5 x 2 50,000
b) Work in progress
Raw Material 5000 x 5 x 2 50,000
Wages 5000 x 3 x 2 x 50% 15,000
Overhead 5000 x 2 x 2 x 50% 10,000 75,000
c) Finished Goods 5000 x 10 x 2 100,000

2 Debtors 5000 x 15 x 4 300,000

3 Cash 25,000

Total Current Assets A 550,000

B Current Liabilites
1 Creditors 5000 x 5 x 2 50,000
2 Outstanding wages 5000 x 3 x 2 30,000
3 Outstanding overheads 5000 x 2 x 2 20,000

Total Current Liabiliteis B 100,000

Working Capital A-B 450,000

Illn : 11
Cost Structure
Raw Material 6 10 x 60% Annual 30,000 units
Wages 1 1/6 x 6 per month 30,000/12
Overheads 22 x 1
Total Cost 9
(+) Profit 1 (SP - CP)
Selling price 10
 Statement of working capital
Sr. No Particulars Working Amount Amount
(A) Current Asssets
i) Stock
a) Raw Material 2,500 x 6 x 2 30,000
b) Work-in-progress
Raw Material 2,500 x 6 x 1 15,000
Wages 2,500 x 1 x 1 x 50% 1,250
Overheads 2,500 x 2 x 1 x 50% 2,500 18,750
c) Finsished Goods 2,500 x 9 x 3 67,500

ii) Debtors 2,500 x 10 x 3 75,000

iii) Cash 40,000

Total Current Assets (A) 231,250

(B) Current Liabilities

i) Creditors 2,500 x 6 x 2 30,000
ii) Outstanding wages 2,500 x 1 x 1 2,500
iii) Outstanding overheads 2,500 x 2 x 1 5,000

Total Current liabilities (B) 37,500

Working Capital (A - B) 193,750

Provision of contingencies / Margin of safety

Working Capital XXX 20,000

(+) Margin of safery XX 2000
Total working capital requiremeXXX 22,000

Debtors are valued at _________ rate

RM DW SALES COST

Shortage of working capital results in _________

Poort credit standing More cash discount More trade discount all of the above

Finishded goods are value at ______ rate

Cost

______ will ensure high return on investment

adequate wc Surplus wcShortage of wc None of the above
30,000 units
2,500
all of the above