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What is the weighted average standard cost per litre of input (to two decimal places)? $

What is the weighted average standard cost per litre of input (to two decimal places)? $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Crex Co was set up by Cynthia Rex who created her own brand of chalk paint 20 years ago. Using her background in fine art, she developed this specialist chalk paint to be used in the restoration of furniture and to decorate accessories. The chalk paints are exclusively available through Crex Co's network of over 800 independent stockists who are located in over 30 countries around the world. The manufacturing process begins with the three chemicals required for the paint being measured on electronic scales. A worker then takes the chemicals and places them into a machine for mixing. Once mixed the worker removes the mixture from the machine and transfers it to tin containers. The standard material costs per litre of chalk paint are as follows: Litres required $ per litre 0.80 1.20 0.15 1.40 0.10 0.80 1.05 Material Latex paint Plaster of Paris Calcium carbonate At the end of the last period, actual output of the chalk paint was 3,325 litres and actual data relating to this production is: Materials used Latex paint Plaster of Paris Calcium carbonate Litres 2,140 875 849 $ per litre 1.30 1.37 0.73
Transcribed Image Text:Crex Co was set up by Cynthia Rex who created her own brand of chalk paint 20 years ago. Using her background in fine art, she developed this specialist chalk paint to be used in the restoration of furniture and to decorate accessories. The chalk paints are exclusively available through Crex Co's network of over 800 independent stockists who are located in over 30 countries around the world. The manufacturing process begins with the three chemicals required for the paint being measured on electronic scales. A worker then takes the chemicals and places them into a machine for mixing. Once mixed the worker removes the mixture from the machine and transfers it to tin containers. The standard material costs per litre of chalk paint are as follows: Litres required $ per litre 0.80 1.20 0.15 1.40 0.10 0.80 1.05 Material Latex paint Plaster of Paris Calcium carbonate At the end of the last period, actual output of the chalk paint was 3,325 litres and actual data relating to this production is: Materials used Latex paint Plaster of Paris Calcium carbonate Litres 2,140 875 849 $ per litre 1.30 1.37 0.73
What is the weighted average standard cost per litre of input (to two decimal places)? $ LA
Transcribed Image Text:What is the weighted average standard cost per litre of input (to two decimal places)? $ LA
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Step 1: Introduction:

Standard costing is one of the useful branch of cost accounting. Under this, standards are being prepared and then compared with actuals for the purpose of decision making and for corrective actions. 

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