In: Accounting
ammer Company produces jelly using strawberries and raspberries. Jammer developed the following standard mix for producing 120 gallons of jelly:
Direct Material |
Mix |
Mix Proportion |
SP |
Standard Cost |
Strawberries |
128 lbs. |
0.80 |
$0.50 |
$64 |
Raspberries |
32 lbs. |
0.20 |
$1.00 |
$32 |
Total |
160 lbs. |
$96 |
Jammer put a batch of 1,600 pounds of direct materials into process. Of the total, 1,120 pounds were strawberries, and the remaining 480 pounds were raspberries. The actual yield was 1,300 pounds.