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 a70-gallon batch.

2,600ounces of grape concentrate at $0.08per ounce114pounds of granulated sugar at $0.43per pound100lemons at $0.89each210yeast tablets at $0.20each70nutrient tablets at $0.10each2,800ounces of water at $0.005per ounce

Hank estimates that5% of the grape concentrate is wasted,15% of the sugar is lost, and33% of the lemons cannot be used.

Compute the standard cost of the ingredients for one gallon of wine.(Round intermediate calculations and final answer to 2 decimal places, e.g. 1.25.)