Question

Question 2 Tang Company accumulates the following data concerning raw materials in making its finished product: (1) Price per pound of raw materials—net purchase price $2.90, freight-in $0.40, and receiving and handling $0.20. (2) Quantity per gallon of finished product—required materials 3.20 pounds, allowance for waste and spoilage 0.90 pounds. Compute the following. (Round answers to 2 decimal places, e.g. 1.25.) (a) Standard direct materials price per pound of raw materials. $ (b) Standard direct materials quantity per gallon. pounds (c) Total standard materials cost per gallon. $ Click if you would like to Show Work for this question: Open Show Work

Answer 1

a
Net purchase price	2.90
Add: Freight-in	0.40
Add: Receiving and handling	0.20
Standard direct materials price per pound	3.50
b
Quantity per gallon of finished product	3.20
Add: Allowance for waste and spoilage	0.90
Standard direct materials quantity per gallon	4.10	pounds
c
Standard direct materials price per pound	3.50
X Standard direct materials quantity per gallon	4.10
Total standard materials cost per gallon	14.35