De la Renta Chocolate Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk

De la Renta Chocolate Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (4,800 bars) are as follows:

Ingredient | Quantity | Price
Cocoa      | 650 lbs. | $0.90 per lb.
Sugar      | 200 lbs. | $1.50 per lb.
Milk       | 150 gal. | $2.10 per gal.

Determine the standard direct materials cost per bar of chocolate.

Answer:














Ingredient Quantity × Price Total 
Cocoa 650 lbs. × $0.90 per lb. $   585 
Sugar 200 lbs. × $1.50 per lb. 300 
Milk 150 gal. ×  $2.10 per gal. 315 
Total cost $1,200 
  
Standard direct materials cost per bar of chocolate: 
$1,200 per batch 
4,800 bars 
=  $0.25 per bar