Question

Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (1,670 bars) are as follows: Ingredient Quantity Price Cocoa 660 lbs. $0.30 per lb. Sugar 180 lbs. $0.60 per lb. Milk 150 gal. $1.30 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. $ per bar

Answer 1

Answer:

$0.30 per bar

Explanation:

The computation of the standard direct materials cost per bar of chocolate is shown below:

But before that first we have to find out the total standard cost which is shown below:

= (660 × $0.30) + (180 × $0.60) + (150 × $1.30)

= $198 + $108 + $195

= $501

So,  standard direct materials cost per bar of chocolate is

= $501 ÷ $1,670 bars

= $0.30 per bar