Pure Goodness Company produces and sells canned vegetable juice. The ingredients are first combined in the blending department and then packed in gallon cans in the canning department. The following information pertains to the blending department for January: Item Ingredient A Ingredient B Vegetable juice Materials loss Price per Gallon $ 0.36 0.62 Gallons 12,000 24,000 29,000 7,000 Conversion costs for the blending department are $0.53 per gallon for January. Requirement Determine the cost per gallon of blended vegetable juice before canning.
Pure Goodness Company produces and sells canned vegetable juice. The ingredients are first combined in the blending department and then packed in gallon cans in the canning department. The following information pertains to the blending department for January: Item Ingredient A Ingredient B Vegetable juice Materials loss Price per Gallon $ 0.36 0.62 Gallons 12,000 24,000 29,000 7,000 Conversion costs for the blending department are $0.53 per gallon for January. Requirement Determine the cost per gallon of blended vegetable juice before canning.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Pure Goodness Company produces and sells canned
vegetable juice. The ingredients are first combined in the
blending department and then packed in gallon cans in the
canning department. The following information pertains to
the blending department for January:
Item
Ingredient A
Ingredient B
Vegetable juice
Materials loss
Price per Gallon
$ 0.36
0.62
Gallons
12,000
24,000
29,000
7,000
Conversion costs for the blending department are $0.53
per gallon for January.
Requirement
Determine the cost per gallon of blended vegetable juice
before canning.
Transcribed Image Text:(Only complete the necessary answer boxes. Round the cost per gallon to the
nearest cent.)
Total costs
Cost per gallon of blended vegetable juice
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