A company requires 2,000kg of sand for a special job. They have 1,200kg of sand in stock and cannot use it for any other purpose, although it could be sold for £3 per kg. The stock was originally bought for £5 per kg and new sand can be bought for £6 per kg. What is the total relevant cost of the 2,000kg required for the special job? A £12,000  B £10,800  C £8,400  D £7,600

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A company requires 2,000kg of sand for a special job. They have 1,200kg of sand in stock and cannot use it for any other purpose, although it could be sold for £3 per kg. The stock was originally bought for £5 per kg and new sand can be bought for £6 per kg. What is the total relevant cost of the 2,000kg required for the special job?

A £12,000 
B £10,800 
C £8,400 
D £7,600

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