Analysis of the special order stock


Response to the following problem:

Intercontinental's special order also requires 1,000 kilograms of genatope, a solid chemical regularly used in the company's products. The current stock of genatope is 8,000 kilograms at a book value of 8.10 p per kilogram. If the special order is accepted, the firm will be forced to restock genatope earlier than expected, at a predicted cost of 8.70 p per kilogram. Without the special order, the purchasing manager predicts that the price will be 8.30p when normal restocking takes place. Any order of genatope must be in the amount of 5,000 kilograms.

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Cost Accounting: Analysis of the special order stock
Reference No:- TGS02081386

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