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
Standard direct materials for units produced 5900 units 2 lbs 11800 lbs Using the equation for direc... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
275-B-M-A-S-C (1025).docx
120 KBs Word File
