Your company regularly uses material X and currently has in stock 600 kg, for which it paid 1500 two weeks ago. It this were to be sold as raw material it could be sold today for 2.00 per kg. You are aware that the material can be bought on the open market for 3.25 per kg, but it must be purchased in quantities of 1000 kg.

xfghj) 1825

(d) 1950

(e) 3250

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You have been asked to determine the relevant cost of 600 kg of material X to be used in a job for a customer. The relevant cost of the 600 kg is: (a) 1200 (b) 1325 (c) 1825 (d) 1950 (e) 3250