Problem

JLT ChemicalsJLT manufactures a variety of fertilizers for wheat farmers and uses a standa...

JLT Chemicals

JLT manufactures a variety of fertilizers for wheat farmers and uses a standard cost system. One of JLT’s major inputs to many of its fertilizers is nitrogen, N385-03. JLT started last month with no inventory of N385-03. It purchased 10,000 liters of N385-03 last month at the beginning of the month in one transaction. JLT reported the following results of operations last month with respect to its purchase and use of N385-03:

N385-03 Price variance

$2,000 (Favorable)

N385-03 Quantity usage variance

$600 (Unfavorable)

N385-03 Added to work-in process inventory

$48,000

N385-03 Raw material inventory

$11,400

Required:

Calculate the following parameters that JLT used last month with respect to N385-03:

a. Standard quantity


b. Actual quantity


c. Actual price


d. Standard price

Step-by-Step Solution

Request Professional Solution

Request Solution!

We need at least 10 more requests to produce the solution.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the solution will be notified once they are available.
Add your Solution
Textbook Solutions and Answers Search
Solutions For Problems in Chapter 12