Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

Chineke Ltd is considering the costs to be incurred in respect of a special-order opportunity. The order would require 300 kgs of material A, that

image text in transcribed

Chineke Ltd is considering the costs to be incurred in respect of a special-order opportunity. The order would require 300 kgs of material A, that is readily available and regularly used by the organisation on its normal products. There are 265 kgs of material A in inventory which cost NS3.01 per kg when it was purchased. The current market price is NS3.50 per kg and its resale value is N$3.02. Material A is normally used to make product XY. Each unit of XY requires 3 kgs of material A, and if material Ais costed at N$4 per kg, each unit of X yields a contribution of N$16. Required: What is the relevant cost of material A to be included in the costing of the special order? NB: You are not required to enter the unit or currency symbol. Enter a numerical answer with no space. For example: 1000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

5th Canadian edition

978-1118024492

Students also viewed these Accounting questions