Fancy Foods Company produces and sells canned vegetable juice. The ingredients are first combined in the blending department and then packed in gallon cans in the canning department. The following information pertains to the blending department for January:

Conversion costs for the blending department are $0.55 per gallon for January. Determine the cost per gallon of blended vegetable juice beforecanning.

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PRICE PER GALLON ITEM GALLONS Ingredient A Ingredient B Vegetable juice Materials loss 10,000 20,000 27,000 3,000 $0.40 0.60