Page 148 - Corporate Finance PDF Final new link

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148 Corporate Finance BRILLIANT’S

Solution:
Classification of Cost Per Unit (based on Sales)
10 40
(i) Raw Materials = = ` 4 Per Unit
100

10 20
(ii) Direct Wages = = ` 2 Per Unit
100
10 20
(iii) Overheads = = ` 2 Per Unit
100

Total cost = ` 8 Per Unit
Profit = ` 2 Per Unit

S.P. = ` 10 Per Unit

Statement Showing Working Capital Requirement
Particulars Amount
(`)

A. CURRENT ASSETS
1. Stock
10,00,000 4 3 
(a) Raw Materials: 10,00,000
12

10,00,000 8 2 
(b) Work in process:
12
(Raw materials, wages & overheads are 100% in WIP as mentioned in
question) 13,33,333

10,00,000 8 3 
(c) Finished Stock: 20,00,000
12
10,00,000 8 3 
2. Debtors: 20,00,000
12
3. Cash balance (given) 1,50,000
Total Current Assets (A) 64,83,333
B. CURRENT LIABILITIES
10,00,000 4 4 
1. Creditors: 13,33,333
12