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Mamont248 [21]
3 years ago
10

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 (5,000 bars) are as follows: Ingredient Quantity Price Cocoa 500 lbs. $1.40 per lb. Sugar 100 lbs. $0.50 per lb. Milk 250 gal. $1.60 per gal.Required:Determine the standard direct materials cost per bar of chocolate.
Business
1 answer:
melisa1 [442]3 years ago
7 0

Answer:

Unitary cost= $0.23 per unit

Explanation:

Giving the following information:

Standard costs (5,000 bars):

Cocoa 500 lbs. $1.40 per lb.

Sugar 100 lbs. $0.50 per lb.

Milk 250 gal. $1.60 per gal.

<u>First, we need to calculate the total cost:</u>

Total cost= 500*1.4 + 100*0.5 + 250*1.6

Total cost= $1,150

<u>Now, the unitary cost:</u>

Unitary cost= 1,150/5,000

Unitary cost= $0.23 per unit

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