TB MC Qu.4-36(Static) Alpha Incorporated regularly uses material FLAV4 and currently... Alpha Incorporated...

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Accounting

TB MC Qu.4-36(Static) Alpha Incorporated regularly uses material FLAV4 and currently...
Alpha Incorporated regularly uses material FLAV4 and currently has in stock 460 liters of the material for which it paid $2,622 several weeks ago. If this were to be sold as is on the open
market as surplus material, it would fetch $525 per liter. New stocks of the material can be purchased on the open market for $5.85 per liter, but it must be purchased in lots of 1,000
liters. You have been asked to determine the relevant cost of 800 liters of the material to be used in a job for a customer. The relevant cost of the 800 riters of material FLAV4 is: (CMA
adapted)
Multiple Choice
$4,200
$4.680
$5.850
$4.404
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