HLA Ltd is in the process of preparing a quotation for a special job for a customer. The job will have the following material requirements:

Material Q is used consistently by the business on various jobs.
The business holds materials R, S and T as the result of previous overbuying. No other use (apart from this special job) can be found for R, but the 140 units of S could be used in another job as a substitute for 225 units of material V that are about to be purchased at a price of £10 a unit. Material T has no other use, it is a dangerous material that is difficult to store and the business has been informed that it will cost £160 to dispose of the material currently held.
If it chose to, the business could sell the raw materials Q, R and S already held in their present state.
What is the relevant cost of the materials for the job specified above?

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Units currently held in inventories Material Units required Quantity held Historic cost Sales value Replacement cost /unit /unit /unit PORST 400 0 Q 230 100 62 350 200 48 23 170 140 33 120 120 40 02221 40 50 64 59 49 68