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Question - FAITH Company manufactures "grace" product. The product requires a material called RIZ-829. During the month December, the company purchased 10,000 liters of RIZ-829 and the supplier offered a credit term of 2/10, n/30. In relation to the acquisition of materials, transportation cost incured was P5,000. 2 liters of materials RIZ-829 are needed to produce a single unit. Allowance for scrapped and spoilage due to machine breakdowns was .5 liters. Purchase price is 30,000.
A. Compute the standard price per liter.
B. Compute the standard quantity per unit.
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