In order to utilise some spare capacity,
K、is preparing a quotation for a special order which requires 2,000 kgs of material J.
K、has 800 kgs of material
J、in inventory (original cost $7.00 per kg). Material
J、is used in the company’s main product L. Each unit of
L、uses 5 kgs of material
J、and, based on an input value of $7.00 per kg of J, each unit of
L、yields a contribution of $10.00. The resale value of material
J、is $5.50 per kg. The present replacement price of material
J、is $8.00 per kg. Material
J、is readily available in the market. What is the relevant cost of the 2,000 kgs of material
J、to be included in the quotation?
A、$11,000
B、$14,000
C、$16,000
D、$18,000
K、is preparing a quotation for a special order which requires 2,000 kgs of material J.
K、has 800 kgs of material
J、in inventory (original cost $7.00 per kg). Material
J、is used in the company’s main product L. Each unit of
L、uses 5 kgs of material
J、and, based on an input value of $7.00 per kg of J, each unit of
L、yields a contribution of $10.00. The resale value of material
J、is $5.50 per kg. The present replacement price of material
J、is $8.00 per kg. Material
J、is readily available in the market. What is the relevant cost of the 2,000 kgs of material
J、to be included in the quotation?
A、$11,000
B、$14,000
C、$16,000
D、$18,000
【参考答案及解析】
Since material J is in regular use and is readily available in the market, its relevant cost is the replacement price of $8/kg. So 2,000 kgs × $8/kg = $16,000
Since material J is in regular use and is readily available in the market, its relevant cost is the replacement price of $8/kg. So 2,000 kgs × $8/kg = $16,000