South Atlantic Chemical Company manufactures industrial chemicals chemical solution and needs to develop a standard product cost. The compound (nyclyn) and a solution (salex), heating the mixture, addin- in 18-liter containers. The initial mix, which is 19 liters in volume, cons reduction in volume occurs during the boiling process. The solution addition of protet does not affect the total liquid volume. The purchase price of the direct materials used in the manufacture c
South Atlantic Chemical Company manufactures industrial chemicals chemical solution and needs to develop a standard product cost. The compound (nyclyn) and a solution (salex), heating the mixture, addin- in 18-liter containers. The initial mix, which is 19 liters in volume, cons reduction in volume occurs during the boiling process. The solution addition of protet does not affect the total liquid volume. The purchase price of the direct materials used in the manufacture c
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Transcribed Image Text:Problem 10-34 Determining Standard Material Cost (LO 10-2)
South Atlantic Chemical Company manufactures industrial chemicals in Rio de Janeiro, Brazil. The company plans to introduce a new
chemical solution and needs to develop a standard product cost. The new chemical solution is made by combining a chemical
compound (nyclyn) and a solution (salex), heating the mixture, adding a second compound (protet), and bottling the resulting solution
in 18-liter containers. The initial mix, which is 19 liters in volume, consists of 20 kilograms of nyclyn and 17.6 liters of salex. A 1-liter
reduction in volume occurs during the boiling process. The solution is cooled slightly before 13 kilograms of protet are added. The
addition of protet does not affect the total liquid volume.
The purchase price of the direct materials used in the manufacture of this new chemical solution are given below. (The real
abbreviated R$, is Brazil's national currency. On the day this problem was written, one real was equivalent to 0.270 U.S. dollar)
Nyclyn
Salex
Protet
R$5.15 per kilogram
R$6.20 per liter
R$8.00 per kilogram
Required:
Determine the standard material cost of a 18-liter container of the new product. (Round your answer to 2 decimal places.)
Standard material cost
Check
real
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