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Exercise 23-2 Hank Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production

Exercise 23-2

Hank Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a50-gallon batch.

3,000ounces of grape concentrate at $0.06per ounce54pounds of granulated sugar at $0.30per pound60lemons at $0.60each50yeast tablets at $0.25each50nutrient tablets at $0.20each2,600ounces of water at $0.005per ounce

Hank estimates that4% of the grape concentrate is wasted,10% of the sugar is lost, and25% of the lemons cannot be used.

Compute the standard cost of the ingredients for one gallon of wine.

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