Question

Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (5,200 bars) are as follows:
Ingredient Quantity Price
Cocoa 400lbs. $1.25per lb.
Sugar 80lbs. $0.40per lb.
Milk 120gal. $2.50per gal.
Determine the standard direct materials cost per bar of chocolate. Round to two decimal places.

Answer 1

Answer:

$0.16

Explanation:

Particulars       Quantity   Price    Amount

Cocoa                  400       $1.25      $500

Sugar                   80         $0.40     $32

Milk                      120        $2.50     $300

Total                                                  $832

Standard direct materials cost per bar = Total amount / Number of bar

Standard direct materials cost per bar = $832 / 5,200 bars

Standard direct materials cost per bar = $0.16