Question: The following data relating to direct materials cost for August of the current year are taken from the records of Happy Tots Inc., a manufacturer

The following data relating to direct materials cost for August of the current year are taken from the records of Happy Tots Inc., a manufacturer of plastic toys:

Quantity of direct materials used ......... 12,000 lbs.

Actual unit price of direct materials ........ $2.30 per lb.

Units of finished product manufactured ...... 5,900 units

Standard direct materials per unit of finished product ... 2 lbs.

Direct materials quantity variance—unfavorable ..... $410

Direct materials price variance—favorable ........ $3,000


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.


Step by Step Solution

3.27 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Standard direct materials for units produced 5900 units 2 lbs 11800 lbs Using the equation for direc... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

275-B-M-A-S-C (1025).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!