Desai Confections produces candy bars. The primary materials used in producing candy bars are cocoa, sugar, and milk. The standard costs for a batch of candy (2,500 bars) are as follows: Ingredient Quantity Price per Unit 700 lbs. $0.35 per lb. Cocoa Sugar 200 lbs. $0.55 per lb. Milk 180 gal. $1.50 per gal. Determine the standard direct materials cost per bar of candy.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 1E: Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing chocolate bars...
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The standard costs for a batch of candy (2,500 bars) are as follows:

Desai Confections produces candy bars. The primary materials
used in producing candy bars are cocoa, sugar, and milk. The
standard costs for a batch of candy (2,500 bars) are as follows:
Ingredient Quantity Price per Unit
700 lbs. $0.35 per lb.
Cocoa
Sugar
200 lbs.
$0.55 per lb.
Milk
180 gal.
$1.50 per gal.
Determine the standard direct materials cost per bar of candy.
Transcribed Image Text:Desai Confections produces candy bars. The primary materials used in producing candy bars are cocoa, sugar, and milk. The standard costs for a batch of candy (2,500 bars) are as follows: Ingredient Quantity Price per Unit 700 lbs. $0.35 per lb. Cocoa Sugar 200 lbs. $0.55 per lb. Milk 180 gal. $1.50 per gal. Determine the standard direct materials cost per bar of candy.
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