Scribd Logo
Upload

Welcome to Scribd!

  • Computation of Length of Operating Cycle

    Uploaded by

    Uma Chinnasamy
    7 views1 page
    Length of Operating cycle: period covered Average credit period allowed by creditors Average total of debtors outstanding. Consumption of raw materials per annum total production cost per annum. Sales during the year. Value of stock maintained: raw materials Work in progress. Finished goods stock.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Length of Operating cycle: period covered Average credit period allowed by creditors Average total of debtors outstanding. Consumption of raw materials per annum total production cost per annum. Sales during the year. Value of stock maintained: raw materials Work in progress. Finished goods stock.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    7 views1 page

    Computation of Length of Operating Cycle

    Uploaded by

    Uma Chinnasamy
    Length of Operating cycle: period covered Average credit period allowed by creditors Average total of debtors outstanding. Consumption of raw materials per annum total production cost per annum. Sales during the year. Value of stock maintained: raw materials Work in progress. Finished goods stock.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Computation of length of operating cycle: Period covered Average credit period allowed by creditors Average total of debtors outstanding

    Total consumption of raw materials per annum Total production cost per annum Total cost of sales Sales during the year Value of stock maintained: Raw materials Work in progress Finished goods stock Calculate the operating cycle. Solution: Age of Raw materials Age of WIP = 32000 x 365 = 440000 = 35000 x 365 = 1000000 = 26000 x 365 = $1050000 = 48000 x 365 = $1600000 27 days 1 year of 365 days 16 days Rs.48,000 Rs.4,40,000 Rs.10,00,000 Rs.10,50,000 Rs.16,00,000 Rs.32,000 Rs.35,000 Rs.26,000

    13 days

    Age of finished goods Age of debtors

    9 days

    11 days 60 days (Total) 16 days 44 days

    Less: Age of creditors (given) Length of Operating cycle

    You might also like