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Bramble Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a
Bramble Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch.
2,400 ounces of grape concentrate at $0.01 per ounce |
54 pounds of granulated sugar at $0.50 per pound |
60 lemons at $0.80 each |
100 yeast tablets at $0.21 each |
100 nutrient tablets at $0.14 each |
3,700 ounces of water at $0.005 per ounce |
Bramble estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used. Compute the standard cost of the ingredients for one gallon of wine.
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