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BigorU [14]
3 years ago
15

Standard Direct Materials Cost per Unit Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing ch

ocolate 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
Business
1 answer:
svetoff [14.1K]3 years ago
5 0

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.

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