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 5,900 lb. Actual unit price of direct materials $5.90 per lb. Units of finished product manufactured 1,415 units Standard direct materials per unit of finished product 4 lb. Direct materials quantity variance—unfavorable $1,464 Direct materials price variance—unfavorable $1,180 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 end of the month. If required, round your standard cost per unit answer to two decimal places. Product finished 1415 units Standard finished product for direct materials used 1475 units Deficiency of finished product for materials used 60 units Standard cost for direct materials per unit
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
I just need help finding the standard cost for direct materials I thought it was $1368 but it is incorrect.
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 | 5,900 lb. |
| Actual unit price of direct materials | $5.90 per lb. |
| Units of finished product manufactured | 1,415 units |
| Standard direct materials per unit of finished product | 4 lb. |
| Direct materials quantity variance—unfavorable | $1,464 |
| Direct materials price variance—unfavorable | $1,180 |
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 end of the month. If required, round your standard cost per unit answer to two decimal places.
| Product finished | 1415 | units |
| Standard finished product for direct materials used | 1475 | units |
| Deficiency of finished product for materials used | 60 | units |
| Standard cost for direct materials | per unit |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
