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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
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.
3,325 ounces of grape concentrate at $0.04 per ounce |
54 pounds of granulated sugar at $0.50 per pound |
60 lemons at $0.75 each |
200 yeast tablets at $0.24 each |
200 nutrient tablets at $0.11 each |
2,500 ounces of water at $0.005 per ounce |
Hank estimates that 5% 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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