Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys: Quantity of direct materials used 5,700 lbs. $2.80 per lb. Actual unit price of direct materials Units of finished product manufactured 1,365 units Standard direct materials per unit of finished product Direct materials quantity variance-unfavorable Direct materials price variance-favorable 4 lbs. $720 $1,140 Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month. If required, round your standard cost per unit answer to two decimal places.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Standard Direct Materials Cost per Unit from Variance Data
The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys:
Quantity of direct materials used
5,700 lbs.
$2.80 per lb.
Actual unit price of direct materials
Units of finished product manufactured
1,365 units
Standard direct materials per unit of finished product
4 lbs.
Direct materials quantity variance-unfavorable
$720
Direct materials price variance-favorable
$1,140
Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of
the month. If required, round your standard cost per unit answer to two decimal places.
Product finished
Standard finished product for direct materials used
Deficiency of finished product for materials used
Standard cost for direct materials
units
units
units
per unit
Transcribed Image Text:Standard Direct Materials Cost per Unit from Variance Data The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys: Quantity of direct materials used 5,700 lbs. $2.80 per lb. Actual unit price of direct materials Units of finished product manufactured 1,365 units Standard direct materials per unit of finished product 4 lbs. Direct materials quantity variance-unfavorable $720 Direct materials price variance-favorable $1,140 Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month. If required, round your standard cost per unit answer to two decimal places. Product finished Standard finished product for direct materials used Deficiency of finished product for materials used Standard cost for direct materials units units units per unit
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