Johnny Pickles Brewing Co. brews craft beer for distribution to local taverns an

ID: 2430756 • Letter: J

Question

Johnny Pickles Brewing Co. brews craft beer for distribution to local taverns and retail outlets. In October, the company earned $20093 and incurred the following operating costs to brew 599 barrels:

Wages Expense................ $ 4607

Brewing Supplies.............. $ 7612

Rent on Building............... $ 963

Utilities Expense............... $ 2785

Equipment Depreciation... $ 1069

What was Johnny Pickles Brewing's cost to brew one barrel of beer during October (2 Decimal Places)?

Explanation / Answer

Costs Per Barrel

Cost Details

Wages Expense

$ 4,607.00

Brewing Supplies

$ 7,612.00

rent on Building

$ 963.00

Utilities Expense

$ 2,785.00

Equipment Depreciation

$ 1,069.00

(A)

Total Cost

$ 17,036.00

(B)

Number of Barrels

599

(A/B)

Cost per barrel

$ 28.44

Answer

The cost to brew One Barrel is $28.44