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Question - BB Corporation uses material "A-B" to produce a product "Abab. The material is purchased in two-ton container at a cost of P50,000 per ton. A supplier offered a discount term of 5/10, n/30 and company normally takes all the discount. Shipping cost amounting to P10,000 is to be paid by BB Corporation for an average of ten 2-ton containers.
Nineteen grams of materials "A-B" are needed to produce a product "Abab". About 6.25% of all materials purchased is rejected as unsuitable before being used. In addition, about 1 out 20 "Abab" is rejected at final inspection, due to defect of sort or another.
Required - Compute the standard purchase price for one gram of "A-B".
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