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the contract would also require 100kg of material N and 300kg of material T.Material N is in constant use in the business and there is currently 200kg of the material held in inventory which is valid at $600.the cost of replacing N is $4 per kg.Material T has no other use in the business.there are currently 200kg in inventory which could be sold at the $4 per kg.the replacement cost of T is$8 per kg.
what is the relevant cost of material?
A 1200
B 1600
C 2000
D 2400@hammad1122 said:
the contract would also require 100kg of material N and 300kg of material T.Material N is in constant use in the business and there is currently 200kg of the material held in inventory which is valid at $600.the cost of replacing N is $4 per kg.Material T has no other use in the business.there are currently 200kg in inventory which could be sold at the $4 per kg.the replacement cost of T is$8 per kg.
what is the relevant cost of material?
A 1200
B 1600
C 2000
D 2400
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