Question
FAITH Company manufactures grace product. The product requires a material called RIZ-829. During the month December, the company purchased 10,000 liters of RIZ-829 and the
FAITH Company manufactures "grace" product. The product requires a material called RIZ-829. During the month December, the company purchased 10,000 liters of RIZ-829 and the supplier offered a credit term of 2/10, n/30. In relation to the acquisition of materials, transportation cost incured was P5,000. 2 liters of materials RIZ-829 are needed to produce a single unit. Allowance for scrapped and spoilage due to machine breakdowns was .5 liters.
A. Compute the standard price per liter.
B. Compute the standard quantity per unit.
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Accounting Volume 2
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
2nd Canadian edition
176501452, 978-0176501457, 978-0176509743
