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Can you please solve this question.

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Can you please solve this question.

A company is evaluating a project that requires 400kg of raw material X. The company has 150kg of X in stock that were purchased six months ago for $55 per kg. The company no longer has any use for X. The inventory of X could be sold for $40 per kg. The current purchase price for X is $53 per kg.
What is the total relevant cost of raw material X for the project?
A
$17,950
B
$19,250
C
$21,200
D
$21,500

April 10th 2015 AN ACCA USER 2,300 Points

1 Reply

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The Answer is B 19250
WORKING
The relevant cost is:
150x40=$6000 because it is to be carried in the future
because 150kg are in stock and 250 are more required and there purchase price is 53 So 250x53=13250 answer is 13250+6000=19250

May 3rd 2015 AN ACCA USER 3,210 Points
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