Hank Itzek manufactures and sells homemade wine, and he wants to develop a stand

Question

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 20-gallon batch.

Hank estimates that 3% of the grape concentrate is wasted, 12% of the sugar is lost, and 31% 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.)

3,100 ounces of grape concentrate at $0.08 per ounce 22 pounds of granulated sugar at $0.39 per pound 26 lemons at $0.68 each 100 yeast tablets at $0.29 each 80 nutrient tablets at $0.12 each 2,800 ounces of water at $0.007 per ounce

Explanation / Answer

Particulars Calculation $ Grape Concentrate (3100*0.08)/0.97 255.67 Granulated Sugar (22*0.39)/0.88 9.75 Lemons (26*0.68)/0.69 25.62 Yeast Tablets 100*0.29 29.00 Nutrient Tablet 80*0.12 9.60 Water 2800*0.007 19.60 Standard cost of the ingredients for 20 gallon of wine 349.24 Number of Gallons 20 Standard cost of the ingredients for one gallon of wine 349.24/20 17.46

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