Comments on: Controlling and Costing Materials https://www.accountingdetails.com/controlling_and_costing_materials.htm Learn Financial and Managerial Accounting for Free Mon, 29 Jun 2015 07:56:49 +0000 hourly 1 By: maina https://www.accountingdetails.com/controlling_and_costing_materials.htm#comment-444083 Mon, 29 Jun 2015 07:56:49 +0000 https://www.accountingdetails.com/?p=433#comment-444083 nice

]]> By: nanjudi https://www.accountingdetails.com/controlling_and_costing_materials.htm#comment-1381 Tue, 20 May 2014 06:06:07 +0000 https://www.accountingdetails.com/?p=433#comment-1381 a company has the opinion to procure a particular material from two sources
source 1: assures that deffective will not be more than 2% of supplied quantity
source 2:does not give any assurance,but on the basis of past expireence of supplies received from obsorved that defective percentege2.8%

the material is supplied in lots of 1000 units. source 2 .supplies the lot at a price, which is lower by rs 100as compared to source 1. the defective units of material can be rectified for use at a cost of rs 5 per units. you are required to find out which of the two sources is more economical.

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