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2. Standard materials price, standard quantity. Batangas Blades Corporation uses material Eh-Eh to produce its product Ala-eh. The material is purchased in a two-ton
2. Standard materials price, standard quantity. Batangas Blades Corporation uses material "Eh-Eh" to produce its product "Ala-eh". The material is purchased in a two-ton container at a cost of P50, 000 per ton. The supplier offered a discount term of 5/10, n/30 and the company normally takes all the discount. Shipping costs amounting to P10, 000 is to be paid by Batangas Blades Corporation for an average shipment of ten 2-ton containers. Nineteen grams of materials "Eh-Eh" are needed to produce product "Ala-eh". About 6.25% of all materials purchased is rejected as unsuitable before being used. In addition, about 1 out of 20 "Ala-eh" is rejected at final inspection, due to defect of one sort or another. Required: 1. Compute the standard purchase price for one gram of "Eh-Eh". 2. Compute the standard quantity of "Eh-Eh" per unit of "Ala-eh" that passes final inspection. 3. Prepare a standard material cost sheet per unit of "Ala-eh".
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