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Question: You are required to find out the working capital requirement for ABC Ltd. on the basis of the following data:
There is regular production and sales cycle. Wages and overheads accrue evenly. Wages are paid in the next month of accrual. Material is introduced in the beginning of the production cycle. Work-in-process involves use of full unit of raw materials in the beginning of manufacturing process and other conversion costs equivalent to 50%.
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