Question

ang Company accumulates the following data concerning raw materials in making its finished product: (1) Price per pound of raw materials—net purchase price $2.40, freight-in $0.80, and receiving and handling $0.30. (2) Quantity per gallon of finished product—required materials 3.10 pounds, allowance for waste and spoilage 0.50 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.

Answer 1

a. $3.50

b. 3.60 Pounds

c. $12.60

Step-by-step explanation:

a. The computation of Standard direct materials price per pound of raw materials is shown below:-

Standard direct materials price per Pound of raw materials = Net purchase price + freight-in + receiving and handling

= $2.40 + $0.80 + $0.30

= $3.50

b. The computation of Standard direct materials quantity per gallon is shown below:-

Standard direct materials quantity per gallon = Required materials + Allowance for waste and spoilage

= 3.10 + 0.50

= 3.60 Pounds

c. The computation of Total standard materials cost per gallon is shown below:-

Total standard materials cost per gallon = Standard Direct materials price per Pound of raw materials × Standard Direct materials quantity per gallon

= $3.50 × 3.60

= $12.60