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Specialty Chemicals Limited makes a special powder coating for metal surfaces sold in envelope - style pouches. The main ingredient of this powder coating is
Specialty Chemicals Limited makes a special powder coating for metal surfaces sold in envelopestyle pouches. The main ingredient of this powder coating is a chemical known as X Information concerning the purchase and use of X follows:
Purchase of X: The raw material X is purchased in kilogram containers at a cost of $ per kilogram. A discount of is offered by the supplier for payment within days, and Specialty Chemicals takes all discounts. Shipping costs, which Specialty Chemicals must pay, amount to $ for an average shipment of ten kilogram containers.
Use of X: The bill of materials calls for grams of X per pouch of powder coating. About of all X purchased is rejected as unsuitable and is not used to make the powder coating. Thus, on average the grams of suitable X required for each pouch of powder coating represents of the amount that initially goes into production.
Required:
Compute the standard purchase price for one gram of XRound your answer to decimal places.
Compute the standard quantity of Xin grams per pouch that passes final inspection.
Using the data from and above, prepare a standard cost card showing the standard cost of X per pouch of powder coating. Do not round intermediate calculations. Round "Standard Price per Kilogram" answer to decimal places and "Standard Cost per pouch" answer to decimal places.
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