Question

Roanoke 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 (5,200 bars) are as follows:

Ingredient Quantity Price
Cocoa 400lbs. $1.25per lb.
Sugar 80lbs. $0.40per lb.
Milk 120gal. $2.50per gal.
Determine the standard direct materials cost per bar of chocolate. Round to two decimal places.

Answer 1

$0.16

Step-by-step explanation:

Particulars Quantity Price Amount

Cocoa 400 $1.25 $500

Sugar 80 $0.40 $32

Milk 120 $2.50 $300

Total $832

Standard direct materials cost per bar = Total amount / Number of bar

Standard direct materials cost per bar = $832 / 5,200 bars

Standard direct materials cost per bar = $0.16