Bright Limited is considering whether or not to accept a special contract to supply 2,000 identical units of component X to a customer. To manufacture one unit of component X, Bright requires 4kg of material A. Bright currently has 3,000kg of material A in stock which had an original cost of £4.20 per kg. The current replacement cost of material A is £4.75 per kg and its scrap value is £2 per kg; material A is in constant use by the business. What is the total relevant cost of using material A for this special contract? f29 750

Bright Limited is considering whether or not to accept a special contract to supply 2,000 identical units of component X to a customer. To manufacture one unit of component X, Bright requires 4kg of material A. Bright currently has 3,000kg of material A in stock which had an original cost of £4.20 per kg. The current replacement cost of material A is £4.75 per kg and its scrap value is £2 per kg; material A is in constant use by the business. What is the total relevant cost of using material A for this special contract? f29 750

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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