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