Exercise 23-2 Hank Itzek manufactures and sells homemade wine, and he wants to d

Question

Exercise 23-2 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 70-gallon batch. 4,000 ounces of grape concentrate at $0.06 per ounce 105 pounds of granulated sugar at $0.36 per pound 112 lemons at $0.88 each 280 yeast tablets at $0.23 each 70 nutrient tablets at $0.12 each 3,400 ounces of water at $0.001 per ounce Hank estimates that 4% of the grape concentrate is wasted, 13% 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 2 de a places, eg- , Standard Cost Per Gallon

Explanation / Answer

Standard costs for 70 gallons:

4,000 ounces of grape concentrate at $0.06 per ounce $240 105 pounds of granulated sugar at $0.36 per pound 37.80 112 lemons at $0.88 each 98.56 280 yeast tablets at $0.23 each 64.40 70 nutrient tablets at $0.12 each 8.40 3,400 ounces of water at $0.001 per ounce 3.40 Total cost for 70 gallons: 452.56 Waste values: Grape concentrate wasted 4% 9.60 Sugar lost 13% 4.91 Lemons that cannot be used 20% 19.71 Total cost including waste and lost $486.79 Standard costs for 1 gallon: $6.95

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.