E25-2 Compute standard materials costs Hank Ithek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following items represent the total of contents required for the production of a 50-gallon batch. 13,000 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 12,600 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 "?". Standard Cost Standard Waste Standard Usage ? Quantity per gallon Value Value Value Standard Price $0.06 per Gallon oz. 4% a Ingredient Grape concentrate Sugar Lemons ? lib. ? b 10% 25% 0% 0.30 0.60 ? ? lemons Yeast Value tablet ? 0.25 ? Value tablet 0% ? ? Nutrient Water 0.20 0.005 Value OZ. 0% ? ? Standard cost for one gallon of wine $0.00 a 3,000/50 - 60. 60.96 = 62.5 b 54/50 = 1.08. 1.08.90 = 1.2 C 60/50 = 1.2. 1.2/.75 = 1.6