E23-2 Compute standard materials costs
Hank 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.
	3,000 ounces of grape concentrate at $0.06 per ounce
	54 pounds of granulated sugar at $0.30 per pound
	60 lemons at $0.60 each
	50 yeast tablets at $0.25 each
	50 nutrient tablets at $0.20 each
	2,600 ounces of water at $0.005 per ounce
Hank 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 gallon of wine. (Carry computations to
two decimal places.)
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
		Amount per		Standard		Standard		Standard		Standard Cost
Ingredient		gallon		Waste		Usage		Price		per Gallon
Grape concentrate		Value		4%		?		$0.06		?
Sugar		Value		10%		?		0.30		?
Lemons		Value		25%		?		0.60		?
Yeast		Value		0%		?		0.25		?
Nutrient		Value		0%		?		0.20		?
Water		Value		0%		?		0.005		?
						Standard cost for one gallon of wine