Question

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 (5,000 bars) are as follows: Ingredient Quantity Price Cocoa 500 lbs. $1.40 per lb. Sugar 100 lbs. $0.50 per lb. Milk 250 gal. $1.60 per gal.Required:Determine the standard direct materials cost per bar of chocolate.

Answer 1

Answer:

Unitary cost= $0.23 per unit

Explanation:

Giving the following information:

Standard costs (5,000 bars):

Cocoa 500 lbs. $1.40 per lb.

Sugar 100 lbs. $0.50 per lb.

Milk 250 gal. $1.60 per gal.

First, we need to calculate the total cost:

Total cost= 500*1.4 + 100*0.5 + 250*1.6

Total cost= $1,150

Now, the unitary cost:

Unitary cost= 1,150/5,000

Unitary cost= $0.23 per unit

Answer 2

The standard direct materials cost per bar of chocolate is $0.23 per bar.

First step is to calculate the total direct material cost for production of 5,000 bar of chocolate

Ingredient  Quantity Price Cost

Cocoa         500× $1.40 =$700

Sugar          100 ×$0.50 =$50

Milk             250 ×$1.60 =$400

Total                                $1,150

Second step is to calculate the standard material cost per bar of chocolate

Standard material cost per=$1,150/5,000

Standard material cost per=$0.23 per bar

Inconclusion the standard direct materials cost per bar of chocolate is $0.23 per bar.

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