**XYZ Ltd Estimates and Calculations**
**1. Estimated production units per month**
a. 5000
b. 10000
c. 15000
d. 20000
**Answer: b**
Explanation: Estimated production units per month = Expected level of production units per year / 12 = 1,20,000 / 12 = 10,000
**2. Estimated sales per month**
a. 5000
b. 10000
c. 30000
d. 50000
**Answer: d**
Explanation: Estimated sales per month = No. of units * Selling price per unit = 10,000 * 5 = 50,000
**3. Value of Raw Materials**
a. 5000
b. 10000
c. 30000
d. 50000
**Answer: c**
Explanation: Raw Materials = 60% of sales = 50,000 * 60 / 100 = 30,000
**4. Value of Labour**
a. 5000
b. 10000
c. 30000
d. 50000
**Answer: a**
Explanation: Labour = 10% of sales = 50,000 * 10 / 100 = 5,000
**5. Value of Overheads**
a. 5000
b. 10000
c. 30000
d. 50000
**Answer: b**
Explanation: Overheads = 20% of sales = 50,000 * 20 / 100 = 10,000
**6. Value of finished goods / Cost of sales**
a. 5000
b. 10000
c. 45000
d. 50000
**Answer: c**
Explanation: Finished Goods = Raw Materials + Labour + Overheads = 30,000 + 5,000 + 10,000 = 45,000
**7. Value of Work in Progress**
a. 37500
b. 60000
c. 280500
d. 340500
**Answer: a**
Explanation: Each unit of production is expected to be in process for 1 month. Work in Progress = Raw Materials + (Labour + Overheads reduced by half) = 30,000 + (5,000 + 10,000) / 2 = 37,500
**8. Current Assets**
a. 37500
b. 60000
c. 280500
d. 340500
**Answer: d**
Explanation: Current Assets = Raw Materials (2 months) + Work in Progress + Finished Goods (3 months) + Debtors (3 months) = 60,000 + 37,500 + 1,35,000 + 1,08,000 = 3,40,500
**9. Current Liabilities**
a. 37500
b. 60000
c. 280500
d. 340500
**Answer: b**
Explanation: Current Liabilities = Creditors (2 months) = 60,000
**10. Working Capital**
a. 37500
b. 60000
c. 280500
d. 340500
**Answer: c**
Explanation: Working capital = Current Assets - Current Liabilities = 3,40,500 - 60,000 = 2,80,500