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tia_tia [17]
2 years ago
6

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 (8,100 bars) are as follows: Ingredient Quantity Price Cocoa 480 lbs. $0.40 per lb. Sugar 150 lbs. $0.60 per lb. Milk 120 gal. $1.70 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:
adoni [48]2 years ago
5 0

Answer: $0.06

Explanation:

The standard direct materials cost per bar of chocolate will be:

Cocoa:

Quantity = 480 lbs.

Price = $0.40 per lb

Amount = $192

Sugar:

Quantity = 150 lbs.

Price = $0.60 per lb

Amount = $90

Milk:

Quantity = 120 gal

Price = $1.70 per gal

Amount = $204

Total amount = $192 + $90 + $204 = $486

Since there are 8100 bars of chocolate, the cost per bar will be:

= $486 / 8100

= $0.06

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