Tony Covelli manufactures and sells homemade wine, and he wants to develop a standard cost per liter.

Question:

Tony Covelli manufactures and sells homemade wine, and he wants to develop a standard cost per liter. The following are required for production of a 50-liter batch.

3,000 grams of grape concentrate at €0.06 per gram 

54 kilograms of granulated sugar at €0.30 per kilogram 

60 lemons at €0.60 each

50 yeast tablets at €0.25 each

50 nutrient tablets at €0.20 each

2,600 grams of water at €0.005 per gram

Tony estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used.


Instructions

Compute the standard cost of the ingredients for one liter of wine. (Round to two decimal places.)

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Related Book For  book-img-for-question

Accounting Principles

ISBN: 978-1119419617

IFRS global edition

Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt

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