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

Question
Asked Nov 15, 2019
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346
Chapter 10
III. Exercises
Require
I. Wh
Exercise 1 (Setting Standards; Preparing a Standard Cost Card)
, x1-
bla
2. Br
Medi Laboratories, Inc., a pharmaceutical company, makes an anticoagulant
drug. The main ingredient in the drug is a raw material called Beta ML12
Information concerning the purchase and use of Beta ML12 follows:
var
shondar Ca
Exerci
Purchase of Beta ML12: The raw material Beta ML12 is purchased in 2-
kilogram containers at a cost of P3,000 per kilogram. A discount of
2% is offered by the supplier for payment within 10 days and Medi
Laboratories takes all discounts. Shipping costs, which Medi
Laboratories must pay, amount to P1,000 for an average shipment of
ten 2-kilogram containers.
Halliw
The o
have b
Sta
Duri
discs
Use of Beta ML12: The bill of materials calls for 6 grams of Beta ML12
per capsule of the anticoagulant drug. (A kilogram equals 1,000
About 4% of all Beta ML12 purchased is rejected as
grams.)
unsuitable before being used to make the anticoagulant drug. In
addition, after the addition of Beta ML12, about 1 out of every 26
capsules is rejected at final inspection, due to defects of one sort or
another in the capsule.
Requ
1.
2
3.
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 that
passes final inspection. (Carry computations to two decimal places.)
3. Using the data from (1) and (2) above, prepare a standard cost card
showing the standard cost of Beta ML12 per capsule of the anticoagulant
drug.
Exe
The
inva
rem
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346 Chapter 10 III. Exercises Require I. Wh Exercise 1 (Setting Standards; Preparing a Standard Cost Card) , x1- bla 2. Br Medi Laboratories, Inc., a pharmaceutical company, makes an anticoagulant drug. The main ingredient in the drug is a raw material called Beta ML12 Information concerning the purchase and use of Beta ML12 follows: var shondar Ca Exerci Purchase of Beta ML12: The raw material Beta ML12 is purchased in 2- kilogram containers at a cost of P3,000 per kilogram. A discount of 2% is offered by the supplier for payment within 10 days and Medi Laboratories takes all discounts. Shipping costs, which Medi Laboratories must pay, amount to P1,000 for an average shipment of ten 2-kilogram containers. Halliw The o have b Sta Duri discs Use of Beta ML12: The bill of materials calls for 6 grams of Beta ML12 per capsule of the anticoagulant drug. (A kilogram equals 1,000 About 4% of all Beta ML12 purchased is rejected as grams.) unsuitable before being used to make the anticoagulant drug. In addition, after the addition of Beta ML12, about 1 out of every 26 capsules is rejected at final inspection, due to defects of one sort or another in the capsule. Requ 1. 2 3. 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 that passes final inspection. (Carry computations to two decimal places.) 3. Using the data from (1) and (2) above, prepare a standard cost card showing the standard cost of Beta ML12 per capsule of the anticoagulant drug. Exe The inva rem

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1. Standard Purchase Price for one gram of Beta ML12 [P 3,000 1,000 grams] P 1,000 / (20x1,000 grams)] P3 per gram P 0.5 per gram =P 3.5 per gram Note: The 2% cash discount is not needed be deducted from purchase price because that discount is to be considered as a interest a d finance charges

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