Steven Garcia manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are requiredfor production of a 57-gallon batch.3,420 ounces of grape concentrate at $0.06 per ounce60 pounds of granulated sugar at $0.30 per pound65 lemons at $0.60 each57 yeast tablets at $0.25 each57 nutrient tablets at $0.20 each2,930 ounces of water at $0.005 per ounceSteven estimates that 5% of the grape concentrate is wasted, 12% of the sugar is lost, and 26% 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 2decimal places, e.g. 1.25.)Standard Cost Per Gallon

Total cost for 57 Gallons = Grape concentrate including wasted juice + Granulated sugar including…

Answered: Steven Garcia manufactures and sells…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Anne Sugar makes large ceramic pots for use in outdoor landscaping. She currently has two models, one square and the other round. Because of the size of Anne's creations, only one pot can be fired in the kiln at a time. Information about each model follows: Sales price Variable cost Firing time Round $ 130 $ 46 3.5 hours Assume Anne can sell as many pots as she can create but is limited as to the number of hours that the kiln can be run. Square $ 98 $ 28 Contribution Margin per Unit Contribution Margin per Hour 2.5 hours Required: 1. Compute the contribution margin per unit and contribution margin per hour of firing time. Square Ceramic Pot Round Ceramic Pot 2. Which type of pot should Anne produce to maximize her short-term profit? Which type of pot should Anne produce
bottles that can be sold externally (to soft-drink and juice bottlers) or internally to Asgard Farm's Jams Division. Sales and cost data on a case of 24 basic 12- ounce bottles are as follows: Unit selling price $3.25 Unit variable cost $1.15 Unit product fixed cost* $0.60 Practical capacity in cases 550,000 *$330,000/550,000 During the coming year, the Glassware Division expects to sell 420,000 cases of this bottle. The Jams and Jellies Division currently plans to buy 113,140 cases on the outside market for $3.25 each. Bella Howard, manager of the Glassware Division, approached Paul Vining, manager of the Jams and Jellies Division, and offered to sell the 113,140 cases for $3.20 each. Bella explained to Paul that she can avoid selling costs of $0.14 per case by selling internally and that she would split the savings by offering a $0.05 discount on the usual price. Required: 1. What is the minimum transfer price that the Glassware Division would be willing to accept? Round to the…
Chris Jackson manufactures and sells homemade wine, and he wants to develop a standard cost per litre. The following are required for production of a 150-litre batch: 72.00 litres of grape concentrate at $1.35 per litre 20.25 kg of granulated sugar at $0.60 per kilogram 43.50 lemons at $0.60 each 37.50 yeast tablets at $0.25 each 37.50 nutrient tablets at $0.20 each 54.75 litres of water at $0.10 per litre Chris 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, eg. 1.251.) Standard cost of the ingredients for one litre of wine
Perfect Pet Collar Company makes custom leather pet collars. The company expects each collar to require 2.50 feet of leather and predicts leather will cost $4.50 per foot. Suppose Perfect Pet made 100 collars during February. For these 100 collars, the company actually averaged 2.65 feet of leather per collar and paid $4.10 per foot. Required: 1. Calculate the standard direct materials cost per unit. 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. 3. Without performing any calculations, determine whether the direct materials quantity variance will be favorable or unfavorable. 6. Calculate the direct materials price and quantity variances. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 Req 6 2. Without performing any calculations, determine whether the direct materials price variance will be favorable or unfavorable. 3. Without performing any calculations, determine…
A jeans maker is designing a new line of jeans. These jeans will sell for $410 per unit and cost $328 per unit in variable costs to make. Fixed costs total $120,000. If 5,000 units are produced and sold, what does the income equal?
Zachary Fruit Drink Company planned to make 202,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 404,000 cups of frozen concentrate. The standard price of one cup of apple concentrate is $0.23. Zachary actually paid $115,385 to purchase 412,090 cups of concentrate, which was used to make 203,000 containers of apple juice. Required: b. Compute the actual price per cup of concentrate. (Round your answer to 2 decimal places.) c. Compute the standard quantity (number of cups of concentrate) required to produce the containers. d. Compute the materials price variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance). Round "Price variance" to 2 decimal places.) e. Compute the materials usage variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance). Round "Usage variance"…
Please explain your answer
Solomon Fruit Drink Company planned to make 200,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 400,000 cups of frozen concentrate. The standard price of one cup of apple concentrate is $0.23. Solomon actually paid $126,489 to purchase 408,030 cups of concentrate, which was used to make 201,000 containers of apple juice. Required: b. Compute the actual price per cup of concentrate. (Round your answer to 2 decimal places.) c. Compute the standard quantity (number of cups of concentrate) required to produce the containers. d. Compute the materials price variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance). Round "Price variance" to 2 decimal places.) e. Compute the materials usage variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance). Round "Usage variance"…
Assume that Nantucket Nectars reports the following costs: Nantucket Nectars Company of Making 12-Ounce Glass Bottles (1000,000 units) Total Cost for 1,000,000 Bottles Cost per Bottle DM $ 60,000 $0.06 DL 20,000 0.02 Variable MOH 40,000 0.04 Fixed MOH 80,000 0.08 Total Costs $ 200,000 $ 0.20 Another manufacturer offers to sell Nantucket Nectars the bottles for $0.18. Should Nantucket Nectars make or buy the bottles? How to make this decision Compare: prices from outside supplier versus the relevant cost Price from outside = 0.18 TC = 0.20 Benefit of buying it with another supplier = 0.02 Benefit = 20,000 and hence should buy bottles
Maxim has already spent $31.900 to manufacture a hamster food product called Green Health. Maxim currently has 10,000 bags of Green Health on hand that can be sold for $96,400, Alternatively, Maxim can process it further into a different product, Premium Green, at an additional cost of $6,500. If Maxim processes further. the Premium Green can be sold for $105,000. This would result in revenue of Multiple Choice O $105,000 $102,900 $8.600 $6.500
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?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS