COLORADO INC. is a chemical manufacturer that supplies various products to industrial users. The company plans to introduce a new chemical solution, called Nysap, for which it needs to develop a standard product cost. The following information is available on the production of Nysap: Nysap is made by combining a chemical compound (nyclyn) and a solution (salex), and boiling the mixture. A 20% loss in volume occurs for both the salex and the nyclyn during boiling. After boiling, the mixture consists of 9.6 liters of salex and 12 kilograms of nyclyn per 10-liter batch of Nysap. After the boiling process is complete, the solution is cooled slightly before 5 kilograms of protet are added per 10-liter batch of Nysap. The addition of the protet does not affect the total liquid volume. The resulting solution is then bottled in 10-liter containers. The finished product is highly unstable, and one10-liter batch out of six is rejected at final inspection. Rejected batches have no commercial value and are thrown out. It takes a worker 35 minutes to process one 10-liter batch of Nysap. Employees work an eight- hour day, including one hour per day for rest breaks and cleanup. REQUIREMENTS: 1. 2. Determine the standard quantity for each of the raw materials needed to produce an acceptable 10-liter batch of Nysap. Determine the standard labor time to produce an acceptable 10-liter batch of Nysap. Assuming the following purchase prices and costs, prepare a standard cost card for materials and labor one acceptable 10-liter batch of Nysap: Salex Nyclyn Protet Direct labor cost P1.50 per liter 2.80 per kilogram 3.00 per kilogram 9.00 per hour r3.
COLORADO INC. is a chemical manufacturer that supplies various products to industrial users. The company plans to introduce a new chemical solution, called Nysap, for which it needs to develop a standard product cost. The following information is available on the production of Nysap: Nysap is made by combining a chemical compound (nyclyn) and a solution (salex), and boiling the mixture. A 20% loss in volume occurs for both the salex and the nyclyn during boiling. After boiling, the mixture consists of 9.6 liters of salex and 12 kilograms of nyclyn per 10-liter batch of Nysap. After the boiling process is complete, the solution is cooled slightly before 5 kilograms of protet are added per 10-liter batch of Nysap. The addition of the protet does not affect the total liquid volume. The resulting solution is then bottled in 10-liter containers. The finished product is highly unstable, and one10-liter batch out of six is rejected at final inspection. Rejected batches have no commercial value and are thrown out. It takes a worker 35 minutes to process one 10-liter batch of Nysap. Employees work an eight- hour day, including one hour per day for rest breaks and cleanup. REQUIREMENTS: 1. 2. Determine the standard quantity for each of the raw materials needed to produce an acceptable 10-liter batch of Nysap. Determine the standard labor time to produce an acceptable 10-liter batch of Nysap. Assuming the following purchase prices and costs, prepare a standard cost card for materials and labor one acceptable 10-liter batch of Nysap: Salex Nyclyn Protet Direct labor cost P1.50 per liter 2.80 per kilogram 3.00 per kilogram 9.00 per hour r3.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 17E
Related questions
Question
Transcribed Image Text:COLORADO INC. is a chemical manufacturer that supplies various products to industrial users. The
company plans to introduce a new chemical solution, called Nysap, for which it needs to develop a
standard product cost. The following information is available on the production of Nysap:
Nysap is made by combining a chemical compound (nyclyn) and a solution (salex), and boiling
the mixture. A 20% loss in volume occurs for both the salex and the nyclyn during boiling. After
boiling, the mixture consists of 9.6 liters of salex and 12 kilograms of nyclyn per 10-liter batch
of Nysap.
After the boiling process is complete, the solution is cooled slightly before 5 kilograms of protet
are added per 10-liter batch of Nysap. The addition of the protet does not affect the total liquid
volume. The resulting solution is then bottled in 10-liter containers.
The finished product is highly unstable, and one10-liter batch out of six is rejected at final
inspection. Rejected batches have no commercial value and are thrown out.
It takes a worker 35 minutes to process one 10-liter batch of Nysap. Employees work an eight-
hour day, including one hour per day for rest breaks and cleanup.
REQUIREMENTS:
Determine the standard quantity for each of the raw materials needed to produce an acceptable
10-liter batch of Nysap.
Determine the standard labor time to produce an acceptable 10-liter batch of Nysap.
Assuming the following purchase prices and costs, prepare a standard cost card for materials
and labor one acceptable 10-liter batch of Nysap:
Salex
2.
1.
2.
3.
Nyclyn
Protet
Direct labor cost
P1.50 per liter
2.80 per kilogram
3.00 per kilogram
9.00 per hour
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning