Answer Happy

Question:
While preparing a project report on behalf of a client you havecollected the following facts. Estimate the net working capitalrequired for that project. Add 10 per cent to your computed figureto allow contingencies:
Selling price, Rs 200 per unit Level of activity, 1,04,000 unitsof production per annum Raw materials in stock, average 4 weeksWork in progress (assume 50 per cent completion stage in respect ofconversion costs and 100 per cent completion in respect ofmaterials), average 2 weeks Finished goods in stock, average 4weeks Credit allowed by suppliers, average 4 weeks Credit allowedto debtors, average 8 weeks Lag in payment of wages, average 1.5weeks Cash at bank is expected to be, Rs 25,000. You may assumethat production is carried on evenly throughout the year (52 weeks)and wages and overheads accrue similarly. All sales are on creditbasis only.
Please proper explain and do not copy from answers. Otherwise ihave to report the answer.
Particulars Estimated cost per unit of production: Raw material Direct labour Overheads (exclusive of depreciation, Rs 10 per unit) Total cash cost Amount per unit Rs 80 30 60 170