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6: Pfizer Company is making Panadol in its factory. To make Panadol it needs two important materials which are paracetamol and caffeine. The Cost department
6: Pfizer Company is making Panadol in its factory. To make Panadol it needs two important materials which are paracetamol and caffeine. The Cost department gives information about paracetamol as follows: Purchase of Paracetamol: The raw material Paracetamol is purchased in 3-kilogram containers at a cost of $3,000 per kilogram. A discount of 2% is offered by the supplier for payment within 10 days and Pfizer takes all discounts. Shipping costs, which Pfizer must pay, amount to 1,000 Kr for an average shipment of ten 3-kilogram containers. Use of Paracetamol: The bill of materials calls for 6 grams of Paracetamol per capsule of the anticoagulant drug. (A kilogram equals 1,000 grams.) About 5% of all Paracetamol purchased is rejected as unsuitable before being used to make the anticoagulant drug. In addition, after the addition of Paracetamol, about 1 out of every 26 capsules is rejected at final inspection, due to defects of one sort or another in the capsule. Required: 1. Compute the standard purchase price for one gram of Paracetamol. 2. Compute the standard quantity of Paracetamol (in grams) per capsule that passes final inspection. (Carry computations to two decimal places.) 3. using the data from (1) and (2) above, prepare a standard cost card showing the standard cost of Paracetamol per capsule of the anticoagulant drug
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