Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 $ ____________

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survival Audit And Calculations Manual

Authors: Dr Joseph Lee Bounds

1st Edition

1505425573, 978-1505425574

More Books

Students also viewed these Accounting questions

Question

Give examples of lean services.

Answered: 1 week ago