Janus inc is preparing an estimate for a customer order the, Ask an Expert

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Janus, Inc. is preparing an estimate for a customer order. The order requires 800 liters of material K44T. K44T is used in a number of Janus products. You have the following additional information:

- The company already has 460 liters of this raw material in stock for which they paid $2,622 several weeks ago.

- The resale value of the existing stock of the material is $5.25 per liter.

- New stocks of the material can be readily purchased for $5.85 per liter but it must be purchased in lots of 1000 liters.

What is the relevant cost (in total) of 720 liters of the raw material when deciding how much to bid on special order?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9952665

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