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Swifty Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a
Swifty Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch.
3,325 ounces of grape concentrate at $0.09 per ounce |
54 pounds of granulated sugar at $0.45 per pound |
60 lemons at $0.65 each |
100 yeast tablets at $0.28 each |
50 nutrient tablets at $0.14 each |
2,100 ounces of water at $0.005 per ounce |
Swifty 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. (Round intermediate calculations and final answer to 2 decimal places, e.g. 1.25.)
Standard Cost Per Gallon | $enter the standard cost per gallon in dollars rounded to 2 decimal places |
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