Ayayai Itzek manufactures and sells homemade wine, and he wants todevelop a standard cost per gallon. The following are required for theproduction of a 50-gallon batch.- 2,910 ounces of grape concentrate at $0.08 per ounce.- 54 pounds of granulated sugar at $0.40 per pound.60 lemons at $0.70 each.250 yeast tablets at $0.29 each.- 200 nutrient tablets at $0.12 each.- 2,800 ounces of water at $0.005 per ounce.Ayayai estimates that 3% of the grape concentrate is wasted, 10% ofthe sugar is lost, and 25% of the lemons cannot be used.Compute the standard cost of the ingredients for one gallon of wine.

Step 1: Key Information and AdjustmentsWe calculate the cost of each ingredient per 50-gallon batch,…

Answered: Ayayai Itzek manufactures and sells…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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