more-arw search

Q&A Forum

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

Answers

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

Why not tell us what you think the answer is and what logic or accounting principle you used to determine that answer - you'll learn more...

142 views
Topics

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.