Finding the standard cost of a material mix given standard quantities and prices

Problem 1

If the production of 200 litres of product MAGNA requires a standard mix of:

Material P 40 lbs @ Standard cost 12.50/lb,

Material Q 50 lbs @ Standard cost 15.00/lb,

Material R 75 lbs @ Standard cost 10.00/lb,

Find out the standard cost of this material mix.

Ans: [2,000]

Calculation of Standard Cost
	Standard
	SQ	SP	SC
Material P Material Q Material R	40 50 75	12.5 15 10	500 750 750
Total/Mix	165	12.12	2,000
Output	200 SO

units : _Q in lbs, _P in value/lb and _O in units

S3 ↠ P2