Question

Standard Direct Materials Cost per Unit 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 (1,800 bars) are as follows: Ingredient Quantity Price Cocoa 480 lbs. $0.30 per lb. Sugar 150 lbs. $0.60 per lb. Milk 120 gal. $1.20 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. $fill in the blank 1 per bar

Answer 1

Answer:

Crazy Delicious Inc.

The standard direct materials cost per bar of chocolate is:

= $0.21.

Explanation:

a) Data and Calculations:

A batch of chocolate = 1,800 bars

Ingredient    Quantity    Price                   Total Cost

Cocoa            480 lbs.   $0.30 per lb.       $144.00

Sugar             150 lbs.    $0.60 per lb.          90.00

Milk                120 gal.    $1.20 per gal.       144.00

Total standard materials costs                $378.00

Standard direct materials cost per bar       $0.21 ($378/1,800)

b) The standard direct materials cost per bar is computed as the dividend of total direct material costs per batch divided by the batch quantity.