BB Corporation uses material "A

-

B" to produce a product "Abab. The material is purchased

in two

-

ton container at a cost of P50,000 per ton. A supplier of

fered a discount term of

5/10, n/30 and company normally takes all the discount. Shipping cost amounting to

P10,000 is to be paid by BB Corporation for an average of ten 2

-

ton containers.

Nineteen grams of materials "A

-

B" are needed to produce a product "

Abab". About 6.25%

of all materials purchased is rejected as unsuitable before being used. In addition, about

1 out 20 "Abab" is rejected at final inspection, due to defect of sort or another.

Required:

1.

Compute the standard purchase price for one gram of

"A

-

B"

2.

Compute the standard quantity of "A

-

B" per unit of "Abab" that passes final

inspection.