.3 From the following figures, prepare an estimate of the working capital:

Production 30000 units

Selling price per unit Rs. 10

Raw material 60% of selling price

Direct wages 1/6th of raw material Overheads Twice the Direct Wages

Material in Hand 2 months requirement

Production time 1 month

Finished goods in store 3 months

Credit for material 2 months

Credit allowed to customers 3 months

Average cash balance Rs. 40000

Wages and overheads are paid in the beginning of next month. In production all the material are charged in the initial stage and wages and overheads accrue evenly.