   Chapter 23, Problem 23.1EX

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Textbook Problem

Standard direct materials cost per unit Roanoke 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 (5,200 bars) are as follows: Ingredient Quantity Price Cocoa 400lb. $1.25per lb. Sugar 80 lb.$0.40 per lb. Milk 120 gal. $2.50 per gal. Determine the standard direct materials cost per bar of chocolate. To determine Standard cost: In the accounting records, the term standard cost refers to the practice of replacement of an expected cost for an actual cost. Then the difference between the expected costs, and actual costs showing the variance are also recorded periodically. A standard costs is also known as target cost or predetermined cost. To determine: The standard direct materials cost per bar of chocolate. Explanation Determine the standard direct materials cost per bar of chocolate.  Ingredient Quantity Price Total Cocoa 400 lb.$1.25 per lb. $500 Sugar 80 lb.$0.40 per lb. 32 Milk 120 gal. $2.50 per gal. 300 Total cost$832

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