What the relevant cost of material in assessing

Assignment Help Managerial Accounting
Reference no: EM132541909

The production of a special product, Alpha, is being considered to use up the spare capacity which is available this year. This product is unlikely to be produced in future years. It requires 200 kg of material A15 which has been in stock since it was purchased last year for an order which was subsequently cancelled. No other use for the material is envisaged at the present time. It had cost £35 per kg, whereas new supplies would now cost £30 per kilo. However, if this old stock was resold today it would realise only £20 per kg.

Question 1: The relevant cost of material A15 in assessing the special product is:

Option A. £6,000

Option B. Zero

Option C. £7,000

Option D. £4,000

Reference no: EM132541909

Questions Cloud

Decision-making process different for probation for parole : How is the decision-making process different for probation than for parole? What other factors are considered in the decision to grant probation?
GRM5035 Research Methods for Business Assignment : GRM5035 Research Methods for Business Assignment Help and Solution, Gulf College - Assessment Writing Service - An ability to design research proposals
Why communication skills important to organizational success : In a 250-300 word response, discuss why communication skills are important to organizational success and why recruiters focus so much on finding leads.
Flow of money within the circular flow model : Discuss how microeconomics and macroeconomics affect the flow of money within the Circular Flow Model.
What the relevant cost of material in assessing : The production of a special product, Alpha, is being considered to use up the spare, What The relevant cost of material A15 in assessing the special product is?
Determination of equilibrium prices : Partial equilibrium analysis is described as the determination of equilibrium prices and quantities in a market which is partly dependent on effects
How much are total variable costs : Sarks Company has a contribution margin of $150,000 and a contribution margin ratio of 30%. How much are total variable costs?
Six rights of the consumer : Research and describe the six rights of the consumer. Provide a detailed analysis of each right and illustrate the importance.
Evaluate current industry solution or remediation activities : Evaluate current industry solutions or remediation activities to address the identified labor costs. Predict future changes (e.g., policy, funding, or public.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd