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 a210-gallon
Hank Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a210-gallon batch.
3,300ounces of grape concentrate at $0.03per ounce357pounds of granulated sugar at $0.36per pound294lemons at $0.63each840yeast tablets at $0.28each1,050nutrient tablets at $0.11each3,100ounces of water at $0.001per ounce
Hank estimates that1% of the grape concentrate is wasted,15% of the sugar is lost, and30% 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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