EX 14-37 (Algo) Special Order (LO 14-4, 14-5) [The following information applies to the questions displayed below.] Intercontinental's special order requires 1,100 kilograms of genatope, a solid chemical regularly used in the company's products. The current stock of genatope is 8,300 kilograms at a book value of 9.60 p per kilogram the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted cost of 10.20 p per kilogram. Without the special order, the purchasing manager predicts that the price will be 9.80 p when normal restocking takes place. Any order of genatope must be in the amount of 6,700 kilograms EX 14-37 (Algo) Part 1: What is the relevant cost of genatope? Required: What is the relevant cost of genatope? Hote: Enter your answer in pesos. Tota relevant cost 13,500 p
EX 14-37 (Algo) Special Order (LO 14-4, 14-5) [The following information applies to the questions displayed below.] Intercontinental's special order requires 1,100 kilograms of genatope, a solid chemical regularly used in the company's products. The current stock of genatope is 8,300 kilograms at a book value of 9.60 p per kilogram the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted cost of 10.20 p per kilogram. Without the special order, the purchasing manager predicts that the price will be 9.80 p when normal restocking takes place. Any order of genatope must be in the amount of 6,700 kilograms EX 14-37 (Algo) Part 1: What is the relevant cost of genatope? Required: What is the relevant cost of genatope? Hote: Enter your answer in pesos. Tota relevant cost 13,500 p
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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nkt.3
![EX 14-37 (Algo) Special Order (LO 14-4, 14-5)
[The following information applies to the questions displayed below.]
Intercontinental's special order requires 1,100 kilograms of genatope, a solid chemical regularly used in the
company's products. The current stock of genatope is 8,300 kilograms at a book value of 9.60 p per kilogram. If
the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted
cost of 10.20 p per kilogram. Without the special order, the purchasing manager predicts that the price will be
9.80 p when normal restocking takes place. Any order of genatope must be in the amount of 6,700 kilograms.
EX 14-37 (Algo) Part 1: What is the relevant cost of genatope?
Required:
What is the relevant cost of genatope?
Note: Enter your answer in pesos.
Totalrelevant cost
13,500 p](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F21a2cba4-dc75-449c-a4a9-ffaace5b7745%2Ff62e8af1-ca44-4376-b5f1-140dd3f0587b%2F5b72gwy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:EX 14-37 (Algo) Special Order (LO 14-4, 14-5)
[The following information applies to the questions displayed below.]
Intercontinental's special order requires 1,100 kilograms of genatope, a solid chemical regularly used in the
company's products. The current stock of genatope is 8,300 kilograms at a book value of 9.60 p per kilogram. If
the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted
cost of 10.20 p per kilogram. Without the special order, the purchasing manager predicts that the price will be
9.80 p when normal restocking takes place. Any order of genatope must be in the amount of 6,700 kilograms.
EX 14-37 (Algo) Part 1: What is the relevant cost of genatope?
Required:
What is the relevant cost of genatope?
Note: Enter your answer in pesos.
Totalrelevant cost
13,500 p
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