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Hi, can someone help in answering these questions, please?

Mark Blake's Profile

Sherburn plc has sufficient material Y in stock for a year’s production of “Stingfree”. Material Y costs £8,000 but is subject to major price variations; the current market value is double the original cost. It could be sold at the market price less 15% selling expenses. An alternative is to retain it for later use by which time the market price is expected to be £11,200.
The relevant cost of using material Y on the Stingfree contract is:
Select one:
A. £8,000
B. £ nil
C. £11,200
D. £13,600

Coolbreeze company is evaluating a project that requires 800kg of raw material A. the company has 300kg of A in stock that were purchased six months ago for £110 per kg. The company no longer has any use of A. the inventory could be sold for £80 per kg. the current purchase price for A is £106 per kg.
What is the total relevant cost of raw material A for the project?
Select one:
A. £77,000
B. £86,000
C. £71,800
D. £84,800
E. £64,000
E. £16,000


Topic Expert
Wayne Spivak
Title: President & CFO
LinkedIn Profile
(President & CFO, |

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