Accounting · Management Accounting
YB Co specialises in assembling CPUs for desktop computers. There is a request for a special order where each CPU requires Component X and Component Y. Component X: All required units are in stock, originally costing $5,000. Current resale value is $1,500, and current replacement purchase price is $6,200. Component X is regularly used in other orders. Component Y: Contains chemicals requiring special handling and is rarely ordered. Part of it is in stock from a previous order (original cost $4,800), which otherwise has a disposal cost of $2,000. The remaining required Component Y units must be purchased for $5,600. Which of the following correctly identifies the relevant cost of the two components for this special order?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Component X: $6,200; Component Y: $3,600✓
- 2Component X: $6,200; Component Y: $7,600
- 3Component X: $1,500; Component Y: $4,800
- 4Component X: $5,000; Component Y: $4,800
Correct answer
Component X: $6,200; Component Y: $3,600
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