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Sunday, April 10, 2011

Working capital Management

2. The cost accountant provided with the following information about production, cost, and other related issues of a company. As the financial manager of the company you are required to calculate the working capital requirement:
Annual Production------------52000 Unit
Raw material cost per unit----80 Tk
Direct labor cost per unit-----20 Tk
Overhead cost per unit-------60 Tk
Total Cost per unit -------  160 Tk
Profit per unit----------------40 Tk
Selling price per unit---------200 Tk

Managerial Finance/ Working capital Management


Problem :1 As a management accountant of a company, you are required to prepare a statement showing working capital requirement for 24000 units of production in next year. The following information are given in this purpose:

1. Cost:
Direct row material cost per unit --------------------------Tk. 20
Direct labor cost per unit ---------------------------------Tk. 8
Overhead (100% of selling price)
Profit 20% of selling price.

Managerial Finance/ Working capital Management

Problem :1 As a management accountant of a company, you are required to prepare a statement showing working capital requirement for 24000 units of production in next year. The following information are given in this purpose:

1. Cost:
Direct row material cost per unit --------------------------Tk. 20
Direct labor cost per unit ---------------------------------Tk. 8
Overhead (100% of selling price)
Profit 20% of selling price.