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Point 1: Your company regularly uses material X and currently has in inventory 500 kgs for which it paid $1,500 two weeks ago. If 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 of1,000 kgs. You have been asked to determine the relevant cost of 600 kgs of material X to be used in a job for a customer.
Question1 : The relevant cost of the 600 kgs is
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