Tang Company accumulates the following data concerning raw materials in making o

Question

Tang Company accumulates the following data concerning raw materials in making one gallon of finished product: (1) Price—net purchase price $2.30, freight-in $0.20, and receiving and handling $0.10. (2) Quantity—required materials 3.6 pounds, allowance for waste and spoilage 0.4 pounds.

Compute the following. (Round answers to 2 decimal places, e.g. 1.25.)

(a) Standard direct materials price per gallon.

$

(b) Standard direct materials quantity per gallon.

pounds (c) Total standard materials cost per gallon.

$

Explanation / Answer

The answer for the above question is :

PARTICULARS Amount in $ Purchase price 2.3 Freight 0.2 Receiving and handling 0.1 Total rate 2.6 Hours Required Actual production 3.6 Wastage material 0.4 Total Required material 4 Therefore total standard material cost per gallon 10.4

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