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Question 1b A company is evaluating a project that required the following types of material. MATERIAL IN STOCK NEEDED PURCHASE CURRENT FOR PURCHASE CONTRACT ABUD A C 100 1,100 E F 1,000 1,000 100 200 100 50,000 1,000 PRICE OF STOCK (RS.) 1.10 2.00 4.00 0.18 0.90 PRICE (RS.) 3.00 Required: Calculate the relevant cost of each material. 0.90 6.00 3.00 2.00 5,000 0.25 3,000 1.00 Material B and E are used regularly in the company. Material A could be sold to a local sculptor, if not used for the contract. Material A and E can be used for other purpose, such as property maintenance. Company has no use for material D and F, the stocks of which are obsolete. CURRENT RESALABLE PRICE (RS.) 0.20 2.00 2.00 1.00 ---

Question 1b A company is evaluating a project that required the following types of material. MATERIAL IN STOCK NEEDED PURCHASE CURRENT FOR PURCHASE CONTRACT ABUD A C 100 1,100 E F 1,000 1,000 100 200 100 50,000 1,000 PRICE OF STOCK (RS.) 1.10 2.00 4.00 0.18 0.90 PRICE (RS.) 3.00 Required: Calculate the relevant cost of each material. 0.90 6.00 3.00 2.00 5,000 0.25 3,000 1.00 Material B and E are used regularly in the company. Material A could be sold to a local sculptor, if not used for the contract. Material A and E can be used for other purpose, such as property maintenance. Company has no use for material D and F, the stocks of which are obsolete. CURRENT RESALABLE PRICE (RS.) 0.20 2.00 2.00 1.00 ---

Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter12: Valuation: Cash-flow Based Approaches
Section: Chapter Questions
Problem 2CIC
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Question 1b A company is evaluating a project that required the following types of material. MATERIAL IN STOCK PURCHASE CURRENT PRICE OF PURCHASE STOCK |<|m|o|a|uu A B C D 100 1,100 E NEEDED FOR CONTRACT 1,000 1,000 100 200 (RS.) 1.10 2.00 --- 4.00 0.18 0.90 100 2.00 50,000 5,000 0.25 1,000 3,000 1.00 F Material B and E are used regularly in the company. Material A could be sold to a local sculptor, if not used for the contract. Material A and E can be used for other purpose, such as property maintenance. Company has no use for material D and F, the stocks of which are obsolete. PRICE (RS.) 3.00 0.90 6.00 3.00 0.20 2.00 Required: Calculate the relevant cost of each material. CURRENT RESALABLE PRICE (RS.) 2.00 1.00
Transcribed Image Text:Question 1b A company is evaluating a project that required the following types of material. MATERIAL IN STOCK PURCHASE CURRENT PRICE OF PURCHASE STOCK |<|m|o|a|uu A B C D 100 1,100 E NEEDED FOR CONTRACT 1,000 1,000 100 200 (RS.) 1.10 2.00 --- 4.00 0.18 0.90 100 2.00 50,000 5,000 0.25 1,000 3,000 1.00 F Material B and E are used regularly in the company. Material A could be sold to a local sculptor, if not used for the contract. Material A and E can be used for other purpose, such as property maintenance. Company has no use for material D and F, the stocks of which are obsolete. PRICE (RS.) 3.00 0.90 6.00 3.00 0.20 2.00 Required: Calculate the relevant cost of each material. CURRENT RESALABLE PRICE (RS.) 2.00 1.00
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