Question

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 (2,857 bars) are as follows: Ingredient Quantity Price Cocoa 630 lbs. $0.40 per lb. Sugar 180 lbs. $0.60 per lb. Milk 150 gal. $1.60 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. $ per bar

Answer 1

Standard direct material cost per unit= $0.21

Step-by-step explanation:

Giving the following information:

The standard costs for a batch of chocolate (2,857 bars) are as follows:

Cocoa 630 lbs. $0.40 per lb.

Sugar 180 lbs. $0.60 per lb.

Milk 150 gal. $1.60 per gal

First, we need to calculate the total cost for 2,857 bars:

Total cost= 630*0.4 + 180*0.6 + 150*1.6

Total cost= $600

Now, the unitary standard cost:

Standard direct material cost per unit= 600/2,857

Standard direct material cost per unit= $0.21