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Problem - Standard direct materials cost per unit - Geneva 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 (5,000 bars) are as follows:
Ingredient
Quantity
Price
Cocoa
510 lbs.
$0.70 per lb.
Sugar
150 lbs.
$1.18 per lb.
Milk
120 gal.
$1.80 per gal.
Required - Determine the standard direct materials cost per bar of chocolate.
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