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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 460-gallon batch. 3, 200 ounces of grape concentrate at $0.07 per ounce 828 pounds of granulated sugar at $0.40 per pound 874 lemons at $0.81 each 2, 300 yeast tablets at $0.20 each 920 nutrient tablets at $0.10 each 3,000 ounces of water at $0.007 per ounce Hank estimates that 3% of the grape concentrate is wasted, 12% 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.) Standard Cost Per Gallon $ ____________
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