Chesapeake Chemical Company supplies primarily industrial users. Your superior has asked you to…

Chesapeake Chemical Company supplies primarily industrial users. Your superior has asked you to develop a standard product cost for a new solution the company plans to introduce.
The new chemical solution is made by combining altium and bollium, boiling the mixture, adding credix and bottling the resulting solution in 20-litre containers. The initial mix, which is 20 litres in volume, consists of 24 kilograms of altium and 19.2 litres of bollium. A 20 per cent reduction in volume occurs during the boiling process. The solution is then cooled slightly before adding 10 kilograms of credix to each 20-litre container; the addition of credix does not affect the total liquid volume. The purchase prices of the raw materials used in the manufacture of this new chemical solution are as follows:

Determine the standard quantity for each of the raw materials needed to produce 20 litres of Chesapeake Chemical Company’s new chemical solution and the total standard materials cost of 20 litres of the new product.

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