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What is the relevant cost of the liters of material spirit

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Reference no: EM133061572

Question - Anil Incorporated regularly uses material of premium spirit and presently has in stock 365liters of the material, for which it paid $2,500 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $6.25per liter. New stocks of the material can be purchased on the open market for $7.20 per liter, but it must be purchased in lots of 1,000 liters.

You have been asked to determine the relevant cost of 900 liters of the material to be used in a job for a customer. What's the relevant cost of the 900 liters of material premium spirit?

Reference no: EM133061572

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