# 346Chapter 10III. ExercisesRequireI. WhExercise 1 (Setting Standards; Preparing a Standard Cost Card), x1-bla2. BrMedi Laboratories, Inc., a pharmaceutical company, makes an anticoagulantdrug. The main ingredient in the drug is a raw material called Beta ML12Information concerning the purchase and use of Beta ML12 follows:varshondar CaExerciPurchase of Beta ML12: The raw material Beta ML12 is purchased in 2-kilogram containers at a cost of P3,000 per kilogram. A discount of2% is offered by the supplier for payment within 10 days and MediLaboratories takes all discounts. Shipping costs, which MediLaboratories must pay, amount to P1,000 for an average shipment often 2-kilogram containers.HalliwThe ohave bStaDuridiscsUse of Beta ML12: The bill of materials calls for 6 grams of Beta ML12per capsule of the anticoagulant drug. (A kilogram equals 1,000About 4% of all Beta ML12 purchased is rejected asgrams.)unsuitable before being used to make the anticoagulant drug. Inaddition, after the addition of Beta ML12, about 1 out of every 26capsules is rejected at final inspection, due to defects of one sort oranother in the capsule.Requ1.23.Required:1. Compute the standard purchase price for one gram of Beta ML12.2. Compute the standard quantity of Beta ML12 (in grams) per capsule thatpasses final inspection. (Carry computations to two decimal places.)3. Using the data from (1) and (2) above, prepare a standard cost cardshowing the standard cost of Beta ML12 per capsule of the anticoagulantdrug.ExeTheinvarem

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