Standard Direct Materials Cost per Unit Choco La Ti-Da Company produces chocolat
ID: 2447823 • Letter: S
Question
Standard Direct Materials Cost per Unit
Choco La Ti-Da 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 (4,500 bars) are as follows:
Ingredient
Quantity
Price
Cocoa
510
lbs.
$1.50
per lb.
Sugar
160
lbs.
$$0.50
per lb.
Milk
100
gal.
$3.25
per gal.
Determine the standard direct materials cost per bar of chocolate. Round to two decimal places.
$ per bar
Ingredient
Quantity
Price
Cocoa
510
lbs.
$1.50
per lb.
Sugar
160
lbs.
$$0.50
per lb.
Milk
100
gal.
$3.25
per gal.
Explanation / Answer
Ingredient Quantity Price Cost of 4500 batrs Cocoa 510 1.5 765 Sugar 160 0.5 80 Milk 100 3.25 325 T0tal Cost of 4500 bars 1170 Hence standard direct materials cost per bar of chocolate =1170/4500 =.26 per bar
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