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Homework answers / question archive / Standard Direct Materials Cost per Unit Roanoke Company produces chocolate bars
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 (955 bars) are as follows:
| Ingredient | Quantity | Price | |||
| Cocoa | 420 | lbs. | $0.30 | per lb. | |
| Sugar | 120 | lbs. | $0.60 | per lb. | |
| Milk | 90 | gal. | $1.30 | per gal. | |
Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent.
| A | B | A X B | |||
| Ingredient | Quantity | Price | Total Cost | ||
| Cocoa | 420 | lbs. | $0.30 | per lb. | $126.00 |
| Sugar | 120 | lbs. | $0.60 | per lb. | $72.00 |
| Milk | 90 | gal. | $1.30 | per gal. | $117.00 |
| $315.00 | |||||
Total direct materials cost for 955 bars = $315
Standard direct materials cost per bar of Chocolate = Total direct materials cost for 955 bars/ 955
= 315/955
= $0.33
The standard direct materials cost per bar of chocolate $0.33
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