Question

Agnessa Premium Chocolate Ltd. produces specialty chocolate confections in England. The owner of the company is setting up a standard costing system; the following data is for one of the company’s products, the Truffle Supreme, made with the finest white chocolate and various fillings. The data below pertain only to the white chocolate used in the product. (The currency in the United Kingdom is the British pound sterling, which is denoted by £.)
Material requirements, kilograms of white chocolate per dozen truffles. . . . . . . 0.80 kilograms
Allowance for waste, kilograms of white chocolate per dozen truffles . . . . . . 0.02 kilograms
Allowance for rejects, kilograms of white chocolate per dozen truffles . . . . 0.03 kilograms
Purchase price, finest-grade white chocolate . . . . . . . . . . . . . . . . . . . . . . . . £9.00 per kilogram
Purchase discount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5% of purchase price
Shipping cost from the supplier in Belgium. . . . . . . . . . . . . . . . . . . . . . . . £0.20 per kilogram
Receiving and handling cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . £0.05 per kilogram
Required:
1. Determine the standard price of a kilogram of white chocolate.
2. Determine the standard quantity of white chocolate for a dozen truffles.
3. Determine the standard cost of the white chocolate in a dozen truffles.


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  • CreatedJuly 08, 2015
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