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Deep Cleaning Company ( DCC ) manufactures a powerful cleaning solvent. The main ingredient in the solvent is a raw material called Echol. Information on
Deep Cleaning Company DCC manufactures a powerful cleaning solvent. The main ingredient in the solvent is a raw material called Echol. Information on the purchase and use of Echol follows.
Purchase of Echol: Echol is purchased in litre containers at a cost of $ per container. A discount of is offered by the supplier for payment within days, and DCC takes all discounts. Shipping costs, which DCC must pay, amount to $ for an average shipment of one hundred litre containers of Echol.
Use of Echol: The bill of materials calls for litres of Echol per bottle of cleaning solvent. About of all Echol used is lost through spillage or evaporation the litres above is the actual content per bottle In addition, statistical analysis has shown that every st bottle is rejected at final inspection because of contamination.
Required:
Compute the standard purchase price for one lifre of Echol. Do not round intermediate calculations and round final answer to decimal places.
Standard price
Compute the standard quantity of Echol in litres per saleable bottle of cleaning solvent. Round intermediate calculations and final answer to decimal places.
Standard quantity Using the data from parts and prepare a standard cost card showing the standard cost of Echol per bottle of cleaning solvent. Round intermediate calculations and final answers to decimal places.
tableItemStandard Quantity,Standard Price,tableStandard CostEchollitres,per,
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