Standard Direct Materials Cost per UnitCrazy 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 (2,800 bars) are as follows:IngredientQuantityPriceCocoa540lbs.$0.30per lb.Sugar150lbs.$0.60per lb.Milk120gal.$1.40per gal.Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent.$per bar

Standard direct material cost per unit is the per unit cost of all materials used in the…

Answered: Determine the standard direct materials…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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 (2,800 bars) are as follows:

Ingredient	Quantity	Price
Cocoa	540	lbs.	$0.30	per lb.
Sugar	150	lbs.	$0.60	per lb.
Milk	120	gal.	$1.40	per gal.

Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent.
$per bar

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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