A company is considering a contract which requires among other things, 50 kg of material M. 80
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A company is considering a contract which requires among other things, 50 kg of material M. 80 kg of material M are in stock which were purchased for Rs. 2 per kg. The replacement price is Rs. 2.15 per kg. The material is in stock as a result of buying error and the company has no other use for it. If not used on this contract, it could be sold for Rs. 1.80 per kg. What is the relevant cost of the material to be used in this contract?
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