Marigold Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are requiredfor production of a 50-gallon batch.2,350 ounces of grape concentrate at $0.07 per ounce54 pounds of granulated sugar at $0.50 per pound60 lemons at $0.65 each100 yeast tablets at $0.20 each150 nutrient tablets at $0.10 each2.400 ounces of water at $0.005 per ounceMarigold estimates that 6% 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,eg. 1.25.)Standard Cost Per Gallon S

Lets understand the basics. Management calculates standard cost for the product for the purpose of…

Answered: Marigold 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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You are serving 4-ounce portions of roasted cauliflower. You purchase cauliflower by the case that contains 9 cauliflowers. Each cauliflower weighs 1 pound 15 ounces. The case costs $30.50. If the yield percent for cauliflower is 60%, then how much would the 4-ounce serving cost?
A 16-gallon beer keg yields about 200 12-oz servings. What would the beverage cost be ona keg costing $85.00? How about premium beer at $150.00? What would the selling pricesbe with 20 percent and 30 percent cost ratios?
Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen is $4.00, variable costs are $1.25 per dozen, and total fixed costs are $825.00. How many dozens of ears of corn must Corny and Sweet sell to breakeven?
Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (5,000 bars) are as follows: Ingredient Quantity Price Cocoa 500 lbs. $1.40 per lb. Sugar 100 lbs. $0.50 per lb. Milk 250 gal. $1.60 per gal. Determine the standard direct materials cost per bar of chocolate.
Marigold Corp.wants to produce and sell a new flavored water. In order to penetrate the market, the product will have to sell at $2 per 12 oz. bottle. The following data has been collected: Annual sales Projected selling and administrative costs Desired profit The target cost per bottle is O $0.16. O $0.20. $0.80. O $0.64. 55000 bottles $8900 $66000
I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Standard Amount per Case Cocoa Dark Chocolate Light Chocolate Standard Price per Pound 9 lb. 6 lb. 7 lb. 11 lb. $5.2 0.6 Sugar Standard labor 0.4 hr. 0.5 hr. time Planned production Standard labor rate Dark Chocolate Light Chocolate 4,200 cases $16.5 per hr. 10,000 cases $16.5 per hr. I Love My Chocolate does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results: Dark Chocolate Actual production (cases) Light Chocolate 10,400 Actual Pounds Purchased and Used 4,000 Actual Price per Pound Cocoa Sugar $5.3 0.55 98,900 138,800 Actual Labor Rate Actual Labor Hours Used Dark chocolate $16.2 per hr. 16.8 per hr. 1,460 5,330 Light chocolate Required: Prepare the following variance analyses for both chocolates and…
Coronado 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. 3,360 ounces of grape concentrate at $0.02 per ounce 54 pounds of granulated sugar at $0.55 per pound 60 lemons at $0.90 each 150 yeast tablets at $0.26 each 250 nutrient tablets at $0.14 each 2.400 ounces of water at $0.005 per ounce Coronado estimates that 4% 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, eg. 1.25) O Show Transcribed Text Coronado estimates that 4% 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, eg. 1.25.) Standard Cost Per…
Drew owns a candy store and is constantly trying new gummy bear flavours. They like to run tests to analyze the results before launching new products. Currently, costs are 20% of revenues. Unfortunately, they only have the capacity to introduce one flavour. Using the table below, which flavour would be the most profitable on a per unit basis? Flavour Pistachio Durian Red Curry Kimchi Peppercorn Product revenue, relative to current product mix -0.25% +3% -2% +1% Product costs, relative to current product mix -8% +8% -20% -1.5%
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I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocoa 9 lbs. 6 lbs. $5.30 Sugar 7 lbs. 11 lbs. 0.60 Standard labor time 0.4 hr. 0.5 hr. Dark Chocolate Light Chocolate Planned production 5,000 cases 11,500 cases Standard labor rate $14.50 per hr. $14.50 per hr. I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results: Dark Chocolate Light Chocolate Actual production (cases) 4,800 12,000 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $5.40 115,800 Sugar 0.55 161,500 Actual Labor Rate Actual Labor Hours Used Dark…
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Michael Brown manufactures and sells homemade wine, and he wants to develop a standard cost per litre. The following are required for production of a 300-litre batch: 90.00 litres of grape concentrate at $1.40 per litre 40.50 kg of granulated sugar at $0.60 per kilogram 87.00 lemons at $0.60 each 72.00 yeast tablets at $0.25 each 69.00 nutrient tablets at $0.20 each 112.50 litres of water at $0.10 per litre Michael 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.) Standard cost of the ingredients for one litre of wine $

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