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A proforma cost sheet of a company provides the following particulars:- Element of cost: 40%- Raw Materials: 10%- Labour: 30%The following further particulars are available:(a) Raw materials are to remain in stores on an average of 6 weeks.(b) Processing time: 4 weeks (assume 50% completion stage with full material consumption).(c) Finished goods are required to be in stock for an average period of 8 weeks.(d) Credit period allowed to debtors, on average: 10 weeks.(e) Lag in payment of wages: 2
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