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Question - USW Ltd a manufacturing entity manufactures specialized robust cellphone cases for resale. The manufacturing cost per ton is R850. Finished products are sold for R935 per ton. Sales expenses amount to R45 per ton, delivery costs amount to R35 per ton and other directly associated costs to inventory to make a sale is R25 per ton. Closing inventories on hand at 31 December 2020 amounts to 3 500 tons. What the amount that must be used to write down inventories to its net realisable value?
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