Homework Answers
Given, Duration of operating cycle = 105 days
We know the equation for Duration of operating cycle = ( Raw material holding period + work-in-progress holding period + Fixed goods holding period + Debtors collection period) - Creditors payment period.
1. Raw material holding period (RMHP) = Average stock of Raw-material * 360 days/ Raw materials consumed
= 35,00,000*360/120,00,000 = 105 days
2.Working progress holding period (WIPHP) = Average stock of work-in-progress*360/Cost of production
= 10,00,000*360/210,00,000 = 17.143 daysdays
3. Finished goods holding period (FGHP) = Average stock of finished goods*360/Cost of sales
= 30,00,000*360/240,00,000 = 45 days
4. Debtor's collection period (DCP) = Average accounts receivable*360/Credit sales for the year
= average accounts receivable = ( opening accounts receivable + closing accounts receivable)/2 = be "x"
= x*360/300,00,000
= 360x/300,00,000
5. Creditors payment period = 75 days
On substitution of all these 5 values in the equation,
105 = (105 + 17.143 + 45 + 360x/300,00,000 ) - 75
On solving x = 10,71,416.667
Now if we solve x,
(15,00,000+ closing balance of accounts receivable)/2 = 10,71,416.667
Then closing balance of accounts receivable = 6,42,832.
Add Answer to:
(10) The following information is available for ACCESS Itd. 105 days Creditors payment period 75 days...
provide explanation to the answers 5. Kakl-Pee Itd has provided you with the following data regarding...
provide explanation to the answers
5. Kakl-Pee Itd has provided you with the following data regarding next year's budget that has just been presented to the board by the Financial Controller of the company. Basic data Budgeted average amount to be outstanding GH 340,000 180,000 150,000 х 10 priceps 300,000 Ayit Bra (211,200) 631.500 Stock: Raw Materials Work-in-progress Finished goods Debtors Creditors Budgeted average working capitai 4 ~ kb The following daily averages are available GH Sales 4,620 Cost of...
The following ratios are available from the accounts of Pop Co Receivables payment period Finished goods...
The following ratios are available from the accounts of Pop Co Receivables payment period Finished goods inventory turnover period Raw materials inventory turnover period Payables payment period 24 days 23 days 3 days 28 days Calculate the length of Pop Co's cash cycle. 6 days 26 days C 32 days 88 days
6.0 Calculate the average manufacturing period and the average storage period. We know the following data...
6.0 Calculate the average manufacturing period and the average storage period. We know the following data of the company Perfilados, S.A: It bought and consumed € 105,000 in raw materials for the manufacture of its product and, on average, maintained a stock level of them in the stock of € 9,250. Calculate the average storage period. Average storage time = (average inventory / cost of annual purchases) x 360 days Calculation: 9250/105000*365=32.2 days is this right? The cost of its...
5 The following ratios are available from the accounts of Pop Co Receivables payment period Finished...
5 The following ratios are available from the accounts of Pop Co Receivables payment period Finished goods inventory turnover period Raw materials inventory turnover period Payables payment period 24 days 23 days 3 days 28 days Calculate the length of Pop Co's cash cycle. A B C 6 days 26 days 32 days 88 days D The following ratios are available for Loopy Co. Inventory turnover period Payables payment period Receivables collection period 170 days 35 days 22 days Calculate...
Problem: 1: Find out working capital by operating cycle method, taking 360 days in a year....
Problem: 1: Find out working capital by operating cycle method, taking 360 days in a year. Sales: Material cost 9,000 units @ $100 each Same is produce and save is selling Labor cost S 50 per unit. S25 per unit Overheads $15 per unit Customers are given 45 days credit and 50 days credit taken from suppliers. Raw materia for 30 days and finished goods for 15 days are kept in stock. Production cycle period is 25 days. Problem: 2:...
The following trial balance was extracted from the books of G & E Production Company Ltd...
The following trial balance was extracted from the books of G
& E Production Company Ltd on 31 December 2018 and presented to
you the Financial Accountant:
Trial Balance
Details/Accounts
Dr $
Cr $
Purchases of direct raw materials
24,200,000
Stock of direct raw materials 1 January 2018
5,500,000
Wages paid to manufacture goods
12,000,000
Insurance
2,000,000
Electricity
1,450,000
Cash at bank
28,000,000
Accounts payable
3,500,000
Discounts
450,000
500,000
Return of direct raw materials
200,000
Cash in hand
600,000
Work-in-progress...
(4), (5) You are given the following information concerning inventory movements in a firm for April...
(4), (5) You are given the following information concerning inventory movements in a firm for April as recorded in the General Ledger. [Note: You may perform calculations below. Workings in your answer book are not required for these parts.] RAW MATERIALS 7,000 1/4 Opening Balance Creditors (-Purchases) 1/5 Balance c/d (next month) Work in Progress 30/4 Closing Balance 12.000 12,000 WORK IN PROGRESS 1/4 Opening Balance Raw materials Direct Labour Overhead Applied 1/5 Balance c/d (next month) Finished Goods 24,000...
How to solve this? per per unit Fantastic Ltd. provides the following budget figure for the...
How to solve this?
per per unit Fantastic Ltd. provides the following budget figure for the next year: Budgeted Production 2,60,000 units per annum Raw Material Rs. 100 per unit Labour Rs. 50 per unit Overheads (Including Depreciation Rs. 10 Rs. 40 unit per unit) Total Cost Rs. 190 per unit Profit Rs. 60 per unit Selling Price Rs. 250 Raw material is in stock, on average for 4 weeks. Materials are in process, on average for 2 weeks. Finished...
The following trial balance was extracted from the books of G & E Production Company Ltd...
The following trial balance was extracted from the books of G & E Production Company Ltd on 31 December 2018 and presented to you the Financial Accountant: Trial Balance Details/Accounts Dr $ Cr $ Purchases of direct raw materials 24,200,000 Stock of direct raw materials 1 January 2018 5,500,000 Wages paid to manufacture goods 12,000,000 Insurance 2,000,000 Electricity 1,450,000 Cash at bank 28,000,000 Accounts payable 3,500,000 Discounts 450,000 500,000 Return of direct raw materials 200,000 Cash in hand 600,000 Work-in-progress...
Q3. (15 Marks) A proforma cost shoct of a company provides the following particulars: Particulars Amount...
Q3. (15 Marks) A proforma cost shoct of a company provides the following particulars: Particulars Amount per unit Elements of cost:(Rs) Raw materials Direct labour Overhead 170 Total cost Profit Selling price The following further particulars are available: Raw materials in stock, on average, one month; Materials in process (completion stage, 50 per cent), on average, half a month: Finished goods in stock, on average, one month. Credit allowed by suppliers is one month; Credit allowed to debtors is two...
provide explanation to the answers
5. Kakl-Pee Itd has provided you with the following data regarding next year's budget that has just been presented to the board by the Financial Controller of the company. Basic data Budgeted average amount to be outstanding GH 340,000 180,000 150,000 х 10 priceps 300,000 Ayit Bra (211,200) 631.500 Stock: Raw Materials Work-in-progress Finished goods Debtors Creditors Budgeted average working capitai 4 ~ kb The following daily averages are available GH Sales 4,620 Cost of...
The following ratios are available from the accounts of Pop Co Receivables payment period Finished goods inventory turnover period Raw materials inventory turnover period Payables payment period 24 days 23 days 3 days 28 days Calculate the length of Pop Co's cash cycle. 6 days 26 days C 32 days 88 days
5 The following ratios are available from the accounts of Pop Co Receivables payment period Finished goods inventory turnover period Raw materials inventory turnover period Payables payment period 24 days 23 days 3 days 28 days Calculate the length of Pop Co's cash cycle. A B C 6 days 26 days 32 days 88 days D The following ratios are available for Loopy Co. Inventory turnover period Payables payment period Receivables collection period 170 days 35 days 22 days Calculate...
Problem: 1: Find out working capital by operating cycle method, taking 360 days in a year. Sales: Material cost 9,000 units @ $100 each Same is produce and save is selling Labor cost S 50 per unit. S25 per unit Overheads $15 per unit Customers are given 45 days credit and 50 days credit taken from suppliers. Raw materia for 30 days and finished goods for 15 days are kept in stock. Production cycle period is 25 days. Problem: 2:...
The following trial balance was extracted from the books of G
& E Production Company Ltd on 31 December 2018 and presented to
you the Financial Accountant:
Trial Balance
Details/Accounts
Dr $
Cr $
Purchases of direct raw materials
24,200,000
Stock of direct raw materials 1 January 2018
5,500,000
Wages paid to manufacture goods
12,000,000
Insurance
2,000,000
Electricity
1,450,000
Cash at bank
28,000,000
Accounts payable
3,500,000
Discounts
450,000
500,000
Return of direct raw materials
200,000
Cash in hand
600,000
Work-in-progress...
(4), (5) You are given the following information concerning inventory movements in a firm for April as recorded in the General Ledger. [Note: You may perform calculations below. Workings in your answer book are not required for these parts.] RAW MATERIALS 7,000 1/4 Opening Balance Creditors (-Purchases) 1/5 Balance c/d (next month) Work in Progress 30/4 Closing Balance 12.000 12,000 WORK IN PROGRESS 1/4 Opening Balance Raw materials Direct Labour Overhead Applied 1/5 Balance c/d (next month) Finished Goods 24,000...
How to solve this?
per per unit Fantastic Ltd. provides the following budget figure for the next year: Budgeted Production 2,60,000 units per annum Raw Material Rs. 100 per unit Labour Rs. 50 per unit Overheads (Including Depreciation Rs. 10 Rs. 40 unit per unit) Total Cost Rs. 190 per unit Profit Rs. 60 per unit Selling Price Rs. 250 Raw material is in stock, on average for 4 weeks. Materials are in process, on average for 2 weeks. Finished...
Q3. (15 Marks) A proforma cost shoct of a company provides the following particulars: Particulars Amount per unit Elements of cost:(Rs) Raw materials Direct labour Overhead 170 Total cost Profit Selling price The following further particulars are available: Raw materials in stock, on average, one month; Materials in process (completion stage, 50 per cent), on average, half a month: Finished goods in stock, on average, one month. Credit allowed by suppliers is one month; Credit allowed to debtors is two...
Most questions answered within 3 hours.
-
3) Do you believe that Disney’s
acquisition-based growth strategy is sustainable?
4) Which competencies support this...
asked 27 minutes ago -
Lowell Corp. sells $100,000 of bonds to private investors. The
bonds are due in five years,...
asked 11 minutes ago -
Rank the following three stocks by their total risk level highest
to lowest night writer has...
asked 53 minutes ago -
A local
electronic company primarily manufactures four highly technical
telecommunication products. Each product must be processed...
asked 1 hour ago -
•Describe the basic structure of collagen monomers •Explain how
amino acid composition of collagen contributes to...
asked 3 hours ago -
Compute the sample correlation coefficient
r for each of the following data sets.
(Use 3 decimal...
asked 4 hours ago -
5a. What are the advantages and disadvantages of Proxy ARP?
b. What is the TTL field...
asked 4 hours ago -
An ice cube (density = 900[kg/m3]) with a side length of
2.54[cm] is held by a...
asked 5 hours ago -
would you say that leaders in the international context are born
or made? That is, can...
asked 6 hours ago -
Instructions
Read the Digital Trends article "Solid state drives are speedier
than hard disk drives. Are...
asked 6 hours ago -
A multiple-choice test consists of 29 questions with possible
answers of a, b, c, d. Estimate...
asked 6 hours ago -
Question 1: Ethanol is the active ingredient of alcoholic
beverages. It is also s a possible...
asked 6 hours ago