Standard direct materials cost per unit bavarian chocolate, Accounting Basics

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Standard direct materials cost per unit bavarian chocolate

Problem

Standard Direct Materials Cost per Unit Bavarian Chocolate 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 (10,000 bars) are as follows: Ingredient Quantity Price Cocoa 630 lbs. $0.4 per lb. Sugar 180 lbs. $0.6 per lb. Milk 150 gal. $1.6 per gal. Determine the standard direct materials cost per bar of chocolate.

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Accounting Basics: Standard direct materials cost per unit bavarian chocolate

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