Debbie Co

Management Jun 06, 2021

Debbie Co. manufactures a product requiring two pounds of direct material. During 2015, Debbie purchases 24,000 pounds of material for $74,400 when the standard price per pound is $3.00. During 2015, Debbie uses 22,000 pounds to make 12,000 products. The standard direct material cost per unit of finished product is:

$6.00.

$6.20.

$6.40.

$6.76.

Expert Solution

Computation of Standard direct material cost per unit of finished product:

Standard direct material cost per unit of finished product = Cost per Pound*Standard Quantity per Unit

= $3*2

= $6.00

So, Standard direct material cost per unit of finished product is $6.00

The correct option is 1st "$6.00".

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