Process costs Health Foods Company produces and sells canned vegetable 10 6 juice. The ingredients are first combined in the blending department and then packed in gallon cans in the canning department. The following information per¬ tains to the blending department for January 2000.

Conversion costs for the blending department are $0.55 per gallon for January 2000. Determine the cost per gallon of blended vegetable juice before canning.

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