Schickel Incorporated regularly uses material B39U and currently has in stock 462 liters of the material for which it paid $2,624 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $5.28 per liter. New stocks of the material can be purchased on the open market for $5.80 per liter, but it must be purchased in lots of 1,000 liters. You have been asked to determine the relevant cost of 550 liters of the material to be used in a job for a customer. The relevant cost of the 550 liters of material B39U is: Multiple Choice $5,800 $2,904 $2,912 $3,190
Schickel Incorporated regularly uses material B39U and currently has in stock 462 liters of the material for which it paid $2,624 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $5.28 per liter. New stocks of the material can be purchased on the open market for $5.80 per liter, but it must be purchased in lots of 1,000 liters. You have been asked to determine the relevant cost of 550 liters of the material to be used in a job for a customer. The relevant cost of the 550 liters of material B39U is: Multiple Choice $5,800 $2,904 $2,912 $3,190
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Schickel Incorporated regularly uses material B39U and currently has in stock 462 liters of the material for which it paid $2,624 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $5.28 per liter. New stocks of the material can be purchased on the open market for $5.80 per liter, but it must be purchased in lots of 1,000 liters. You have been asked to determine the relevant cost of 550 liters of the material to be used in a job for a customer. The relevant cost of the 550 liters of material B39U is:
Multiple Choice
-
$5,800
-
$2,904
-
$2,912
-
$3,190
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