Answer:
$174,215
Explanation:
2,300 units of product
will require: 9 units of material F58
9 x 2,300 = 20,700 units of F58
The relevant cost will be the market price as it will be replenished and used in the future.
20,700 x $4.65 = $96,255
it will also require 7 units of material D66
2,300 x 7 = 16,100 units of D66
The minimum price for this will be the diposal value as currently aren't used and generate an inventory cost for the firm.
currently in stock 15,700 at $4.80 = $ 75,360
The difference will need to be purchased thus, market price.
purhcase of 400 units at $6.50 = $ 2,600
Total cost: $ 77,960
Total cost of materials:
77,960 + 96,255 = 174,215
