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use for the cement. The inventory of cement could be sold for R70 per kg. The current purchase price for cement is R75 per kg. Calculate the total relevant cost of cement for the project.

use for the cement. The inventory of cement could be sold for R70 per kg. The current purchase price for cement is R75 per kg. Calculate the total relevant cost of cement for the project.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cosmo Developments is evaluating a new project that requires 150 kg of cement. The company has 300 kg of cement in stock that was purchased six months ago for R85 per kg. The company no longer has any use for the cement. The inventory of cement could be sold for R70 per kg. The current purchase price for cement is R75 per kg. Calculate the total relevant cost of cement for the project. R22 500 R10 500 R12 750 R11 250
Transcribed Image Text:Cosmo Developments is evaluating a new project that requires 150 kg of cement. The company has 300 kg of cement in stock that was purchased six months ago for R85 per kg. The company no longer has any use for the cement. The inventory of cement could be sold for R70 per kg. The current purchase price for cement is R75 per kg. Calculate the total relevant cost of cement for the project. R22 500 R10 500 R12 750 R11 250
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