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
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