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Standard Direct Materials Cost per Unit

Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (5,200 bars) are as follows:

Ingredient Quantity Price
Cocoa 400 lbs. $1.25 per lb.
Sugar 80 lbs. $0.40 per lb.
Milk 120 gal. $2.50 per gal.
Determine the standard direct materials cost per bar of chocolate. Round to two decimal places.

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Answer:

Unitary Direct material cost= $0.16 per  bar

Explanation:

Giving the following information:

The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (5,200 bars) are as follows:

Ingredient Quantity Price

Cocoa 400 lbs. $1.25 per lb.

Sugar 80 lbs. $0.40 per lb.

Milk 120 gal. $2.50 per gal.

Unitary Direct material cost= (400/5,200)*1.25 + (80/5,200)*0.40 + (120/5,200)*2.5= $0.16 per  bar

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