on 20 et ered ed out of 2 ag question This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version of the exam they are taking. Erongo cc is considering the relevant cash flows involved in a short-term decision. An important client has asked for the minimum price for the processing of a compound. The compound involves the following Material A: Erongo cc needs 500 kg of material for the compound but has 200 kg in stock present. The stock items were bought 3 months ago for N$5/kg but have suffered 10% shrinkage since that date. Material A: is not regularly used in the business and would have to be disposed of at a cost to Erongo cc of N$400 in total. The current purchase price of material Ais N$6.25/kg Material B: Erongo cc needs 800 kg of material B and has this in stock as it is regularly needed. The stock was bought 2 months ago for N$4/kg although it can be bought now at N$3.75/kg due to its seasonal nature. Processing energy costs would be N$200 and the supervisor says he would allocate N$150 of his weekly salary to the job in the company's job costing system. Based upon the scenario information, what is the total cost of material A and B to be built into the minimum price calculation? Answer: Type here to search w