ABC Ltd requires 400kg of material D for a job it is about to start. 300 kgs are currently in stock which cost $5 per kilogram three months ago.?

The current purchase price of material D is $4 per kilogram.

If the material D that the company currently holds is not used in the job in question it will be scrapped a cost of $0.50 per kilo gram. What is the relevant cost of the400 kgs of material D?

a) $440

b) $550

c) $650

d) $575