Question

Brief Exercise 11-2

Tang Company accumulates the following data concerning raw materials in making its finished product: (1) Price per pound of raw materials—net purchase price $2.70, freight-in $0.60, and receiving and handling $0.20. (2) Quantity per gallon of finished product—required materials 3.50 pounds, allowance for waste and spoilage 0.70 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.		$

Answer 1