The following information applies to the questions displayed below. Lakeway Manu

ID: 2524647 • Letter: T

Question

The following information applies to the questions displayed below. Lakeway Manufacturing Co. manufactures and sells household cleaning products. The company's research department has developed a new cleaner for which a standard cost must be determined. The new cleaner is made by mixing 11 quarts of triphate solution and 5 pounds of sobase granules and boiling the mixture for several minutes. After the solution has cooled, 4 ounces of methage are added. This recipe" produces 6 quarts of the cleaner, which is then packaged in 1-quart plastic dispenser bottles. Raw material costs are as follows: Triphate solution Sobase granules Methage Bottle 0.31 per quart 0.76 per pound 1.19 per ounce 0.15 each value Required Information 10.00 points Required: a. Using the preceding data, calculate the raw material cost for one bottle of the new cleaner. (Do not round intermediate calculations. Round final answer to 3 decimal places.) per bottle

Explanation / Answer

Calculate the raw material cost for one bottle of the new cleaner as follows:

Particulars

Amount

T.solution working note

$3.41

S. granules working note

3.8

Methage working note

4.76

Total costs for 10 quarts

$11.97

Cost for 1 quart(11.97/6)

1.995

Add: cost of bottle

.15

Cost for 1 bottle of the new cleaner

$2.145

Explanation:

Cost of T solution = Total quart x price per quart = 11 x $0.31= $3.41

Cost of S.granules = Total ponds x price per pound = 5 x $0.76 = $ 3.8

Cost of Methage = Total ounces x price per ounce = 4 x $1.19 =$4.76