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d.

P816
35. Narciso Corporation is
preparing a bid for a special order
that would require 880 liters of
material
R19S. The company already has
280 liters of this raw material in
stock that originally cost P6.20
per
liter. Material R19S is used in the
company's main product and is
replenished on a periodic basis.
The
resale value of the existing stock
of the material is P5.45 per liter.
New stocks of the material can be
readily purchased for P6.20 per
liter. What is the relevant cost of
the 880 liters of the raw material
when deciding how much to bid
on the special order?
a. P5,006
b. P4,796
c. P5,456
d. None of the above
36. Yehle Inc. regularly uses
material Y51B and currently has
in stock 460 liters of the material
for
which it paid P2,530 several
weeks ago. If this were to be sol

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