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
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