CH 23 1

Standard Direct Materials Cost per Unit Billingsly 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 (1,663 bars) are as follows: Ingredient Quantity Price Cocoa 510 lbs. $0.30 per lb. Sugar 150 lbs. $0.60 per Ib. Milk 120 gal. $1.30 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. per bar