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Hnak Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a
Hnak Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 60-gallon batch.
2,100 ounces of grape concentrate at $0.02 per ounce |
60 pounds of granulated sugar at $0.55 per pound |
98 lemons at $0.61 each |
120 yeast tablets at $0.24 each |
240 nutrient tablets at $0.18 each |
3,000 ounces of water at $0.006 per ounce |
Hank estimates that 4% of the grape concentrate is wasted, 11% of the sugar is lost, and 23% of the lemons cannot be used. Compute the standard cost of the ingredients for one gallon of wine.
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