Question
whitechurch Limited uses two types of materials, doobs and streeps , in its contracts. Information on the raw materials concerned is shown here: Inventories Quantity
whitechurch Limited uses two types of materials, doobs and streeps , in its contracts. Information on the raw materials concerned is shown here: Inventories Quantity Historic cost Sales value Replacement cost item (units) () (/unit) (/unit) Doobs 5,500 180 160 190 Streeps 5,650 200 210 220 doobs are used constantly, but the inventories of steeps are unlikely to be used if a particular contract now under consideration is abandoned. How much should be included in the minimum contract price in respect of the two materials if all the inventories are to be used in that contract?
The relevant costs to be included in the minimum price are:
Minimum price | ||||
Total |
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