Q.
If raw materials are in store for 2 months, processing time 2½ months, finished goods remain in store for 15 days, debtors are allowed 60 days’ credit and credit received from suppliers of raw material is one month, the operating cycle period is :
[A] 7 months
[B] 6 months
[C] 6½ months
[D] 5 months
Answer & Explanation
Answer: 6 months