Question

Everest Confections is known for its rich dark chocolate fudge truffles. Everest sells its fudge truffles to local retailers. A​ "unit" of fudge truffles is a​ 10-pound batch. The standard quantities of ingredients for a batch include 7 cups of​ sugar, 24 ounces of chocolate​ chips, 16 ounces of​ butter, and 22 ounces of evaporated milk. The standard costs for each of the ingredients are as​ follows: $ 0.14 per cup of​ sugar, $ 0.11 per ounce of chocolate​ chips, $ 0.08 per ounce of​ butter, and $ 0.12 per ounce of evaporated milk.

Calculate the standard direct material​ (DM) cost per batch of fudge truffles

​(Enter all dollar amounts to two decimal​ places.)

	Standard Quantity		Standard Price		Standard Cost
Sugar per cup		x		=
Chocolate chips per ounce		x		=
Butter per ounce		x		=
Evaporated milk per ounce		x		=
Standard DM cost per batch

Answer 1

Calculate the standard direct material​ (DM) cost per batch of fudge truffles

​(Enter all dollar amounts to two decimal​ places.)

	Standard Quantity		Standard Price		Standard Cost
Sugar per cup	7	x	0.14	=	0.98
Chocolate chips per ounce	24	x	0.11	=	2.64
Butter per ounce	16	x	0.08	=	1.28
Evaporated milk per ounce	22	x	0.12	=	2.64
Standard DM cost per batch					7.54