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 210-gallon batch. 3,300 ounces of grape concentrate at $0.03 per ounce 357 pounds of granulated sugar at $0.36 per pound 294 lemons at $0.63 each 840 yeast tablets at $0.28 each 1,050 nutrient tablets at $0.11 each 3,100 ounces of water at $0.001 per ounce Hank estimates that 1% of the grape concentrate is wasted, 15% of the sugar is lost, and 30% 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.)
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