Question
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 70-gallon batch. 4,000 ounces of grape concentrate at $0.06 per ounce 134 pounds of granulated sugar at $0.46 per pound 74 lemons at $0.64 each 210 yeast tablets at $0.26 each 140 nutrient tablets at $0.17 each 3,700 ounces of water at $0.004 per ounce Hank estimates that 2% of the grape concentrate is wasted, 8% of the sugar is lost, and 21% 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.) Standard Cost Per Gallon?:
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