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Plano Products manufactures a wide variety of chemical compounds and liquids for industrial uses. The standard mix for producing a single batch of 100 liters
Plano Products manufactures a wide variety of chemical compounds and liquids for industrial uses. The standard mix for producing a single batch of 100 liters of its biggest selling product is as follows Input Chemical Chem-A Chem-B Chem-C Total Cost $ 870 1,540 100 $2,510 Quantity (in liters) Cost (per liter) $29 30 70 25 125 4 There is a standard 20 percent loss in liquid volume during processing due to evaporation. The finished liquid is put into 20-liter containers for sale. Thus, the standard material cost for a 20-liter container is $502.00-($2,510 100 liters) 20 liters per container] The actual quantities of direct materials and the cost of the materials placed in production during September were as follows (materials are purchased and used at the same time) Chemical Chem-A Chem-B Chem-C Quantity (in liters) 24,560 45,400 32.040 102,000 Total Cost $ 599,248 1,047,320 1,198,220 $2,844,788 A total of 9,000 containers (180,000 liters) were produced during September
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