Ayayai Company accumulates the following data concerning raw materials in making one gallon of finished product

Accounting Dec 12, 2020

Ayayai Company accumulates the following data concerning raw materials in making one gallon of finished product. (1) Price—net purchase price $2.30, freight-in $0.30, and receiving and handling $0.20. (2) Quantity—required materials 2.70 pounds, allowance for waste and spoilage 0.50 pounds

Expert Solution

(a) Standard direct materials price per pound of raw materials = $2.30 + $0.30+ $0.20 = $2.80

(b) Standard direct materials quantity per gallon = $2.7 + $0.50 = $3.20 pounds

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