Question

standard direct materials cost per unit truly 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 (2,760 bars) are as follows: ingredient quantity price cocoa 480 lbs. $0.30 per lb. sugar 150 lbs. $0.60 per lb. milk 120 gal. $1.50 per gal. determine the standard direct materials cost per bar of chocolate. round to two decimal places.

Answer 1

The standard direct materials cost per chocolate bar for Truly Delicious Inc. is approximately $0.15 when calculated by summing the costs of cocoa, sugar, and milk, and dividing by the total number of bars produced.

Step-by-step explanation:

The student has asked to determine the standard direct materials cost per bar of chocolate for Truly Delicious Inc. To calculate this, we need to consider the combined costs of cocoa, sugar, and milk, and then divide the total by the number of bars produced.

First, we calculate the total cost for each material:

• Cocoa: 480 lbs. × $0.30 per lb. = $144
• Sugar: 150 lbs. × $0.60 per lb. = $90
• Milk: 120 gal. × $1.50 per gal. = $180

Then, we sum these amounts to find the total cost for materials:

Total materials cost = $144 + $90 + $180 = $414 for 2,760 bars

To find the cost per bar, we divide this total by the number of chocolate bars:

Standard direct materials cost per bar = $414 ÷ 2760 bars ≈ $0.15 per bar (rounded to two decimal places)