A manufacturer produces a product known as Symphony X. The company uses a standard costing system and provides you with the following information: Direct materials required to produce one unit of Symphony X:9.5KGStandard cost of direct materials: £50/KGNormal wastage while producing two units of Symphony X:2.5KG per Unit Based on the above information, what is the standard direct materials cost per unit of Symphony X?Choose one from the following: A.£475.00 B.£350.00 C.£537.50 D.£575.50

The standard units are included of the expected scrap units.

Answered: A manufacturer produces a product known…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A manufacturer produces a product known as Symphony X. The company uses a standard costing system and provides you with the following information:

Direct materials required to produce one unit of Symphony X:	9.5	KG
Standard cost of direct materials:		£50	/KG
Normal wastage while producing two units of Symphony X:	2.5	KG per Unit

Based on the above information, what is the standard direct materials cost per unit of Symphony X?

Choose one from the following:

	A.	£475.00
	B.	£350.00
	C.	£537.50
	D.	£575.50

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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