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Standard Direct Materials Cost per Unit Crazy 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
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Standard Direct Materials Cost per Unit Crazy 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 (1,800 bars) are as follows: Ingredient Quantity Price Cocoa 480 lbs. $0.30 per lb. Sugar 150 lbs. $0.60 per lb. Milk 120 gal. $1.20 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

User Thomas G
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28 votes
28 votes

Answer:

Crazy Delicious Inc.

The standard direct materials cost per bar of chocolate is:

= $0.21.

Step-by-step explanation:

a) Data and Calculations:

A batch of chocolate = 1,800 bars

Ingredient Quantity Price Total Cost

Cocoa 480 lbs. $0.30 per lb. $144.00

Sugar 150 lbs. $0.60 per lb. 90.00

Milk 120 gal. $1.20 per gal. 144.00

Total standard materials costs $378.00

Standard direct materials cost per bar $0.21 ($378/1,800)

b) The standard direct materials cost per bar is computed as the dividend of total direct material costs per batch divided by the batch quantity.

User Vyas Bharghava
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