00:01
In the given question, first of all, we have to find out the standard cost per unit.
00:07
So we will preparing a statement showing computation of standard cost per unit.
00:20
For this, we will prepare a statement that will be having two columns, that is particulars, and here the amount in dollar.
00:41
Now first of all, the direct materials.
00:49
Now the standard for direct materials in the question is said 2 pounds per unit at the rate of 25 per pound.
00:59
That means direct materials are of the consumption rate is 2 pounds per unit at the rate of 25 per pound.
01:18
Now, the production in the quotient is given to be 1 ,200 units.
01:25
So, what will be our calculation? two pounds per unit.
01:28
So how many units we are producing? 1 ,200.
01:31
And at the rate of 25 per pound, that means 25.
01:35
So, this gives us total 60 ,000.
01:41
So direct materials consumed for 1 ,200 units will be 60 ,000...