Question

Tang Company accumulates the following data concerning raw materials in making its finished product: (1) Price per pound of raw materials—net purchase price $3.04, freight-in $0.49, and receiving and handling $0.23. (2) Quantity per gallon of finished product—required materials 3.50 pounds, allowance for waste and spoilage 0.80 pounds. Compute the following. (Round answers to 2 decimal places, e.g. 1.25.) (a) Standard direct materials price per pound of raw materials. $ (b) Standard direct materials quantity per gallon. pounds (c) Total standard materials cost per gallon. $ Click if you would like to Show Work for this question: Open Show Work

Answer 1

a. 3.76

b.4.30

c.16.168

Step-by-step explanation:

a. 3.04 raw materials +0.49 freight +0.23 handling= 3.76 total cost

b. 3.50 + 0.80 allowance = 4.30 pounds

c. 4.30 * $3.76 = $16.168

Answer 2

a) price per pound: 3.76 dollars

b) 4.30 pounds

c) standard cost: std raw material quantity * std price

4.30 * $3.76 = $16.168

Step-by-step explanation:

Raw material cost: we must include all the necessary cost to get theraw material ready for use:

3.04 raw materials +0.49 fregiht +0.23 handling= 3.76 total cost

Pounds per gallon of finished product: we must inclde the allowance because, iof we input less gallon we aren't ending with a gallon of finished product.

3.50 + 0.80 allowance = 4.30 pounds