Hank 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. 3,920 ounces of grape concentrate at $0.01 per ounce 54 pounds of granulated sugar at $0.55 per pound 60 lemons at $0.70 each. 50 yeast tablets at $0.21 each. 250 nutrient tablets at $0.11 each 1,600 ounces of water at $0.005 per ounce Hank estimates that 2% 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
Hank 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. 3,920 ounces of grape concentrate at $0.01 per ounce 54 pounds of granulated sugar at $0.55 per pound 60 lemons at $0.70 each. 50 yeast tablets at $0.21 each. 250 nutrient tablets at $0.11 each 1,600 ounces of water at $0.005 per ounce Hank estimates that 2% 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
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Transcribed Image Text:Hank 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.
3,920 ounces of grape concentrate at $0.01 per ounce
54 pounds of granulated sugar at $0.55 per pound
60 lemons at $0.70 each.
50 yeast tablets at $0.21 each
250 nutrient tablets at $0.11 each
1,600 ounces of water at $0.005 per ounce
Hank estimates that 2% 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
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