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Raul Mondesi manufactures and sells homemade wine, and he wants to develop a standard cost per litre. The following are required for production of a
Raul Mondesi manufactures and sells homemade wine, and he wants to develop a standard cost per litre. The following are required for production of a 150-litre batch:
90.00 litres of grape concentrate at $1.30 per litre |
20.25 kg of granulated sugar at $0.60 per kilogram |
43.50 lemons at $0.60 each |
37.50 yeast tablets at $0.25 each |
37.50 nutrient tablets at $0.20 each |
54.75 litres of water at $0.10 per litre |
Raul estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 20% of the lemons cannot be used. Calculate the standard cost of the ingredients for one litre of wine. (Round intermediate calculations and final answer to 3 decimal places, e.g. 1.251.)
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