Question
Sheridan Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for the production of
Sheridan Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for the production of a 50-gallon batch. 3,800 ounces of grape concentrate at $0.07 per ounce 54 pounds of granulated sugar at $0.45 per pound 60 lemons at $0.70 each 150 yeast tablets at $0.28 each 200 nutrient tablets at $0.17 every 1,900 ounces of water at $0.005 per ounce Sheridan estimates that 5% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used. Compute the standard cost of the ingredients for one gallon of wine
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