Brief Exercise 23-2

Tang Company accumulates the following data concerning raw materials in making one gallon of finished product: (1) Pricenet purchase price $2.73 per pound, freight-in $0.75 per pound, and receiving and handling $0.45 per pound. (2) Quantityrequired materials 3.06 pounds, allowance for waste and spoilage 0.76 pounds.

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

(a)Standard direct materials price per pound.$

(b)Standard direct materials quantity per gallon.

pounds(c)Total standard materials cost per gallon.