Exercise 11-2 manufactures and sells homemade wine, and he wants to develop a st
ID: 2530612 • Letter: E
Question
Exercise 11-2 manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 780-galon batch. 3,400 ounces of grape concentrate at $0.07 per ounce 1,014 pounds of granulated sugar at $0.39 per pound 1,248 lemons at $0.70 each 1,560 yeast tablets at $0.22 each 2,340 nutrient tablets at $0.14 each 2,600 ounces of water at $0.007 per ounce Hank estimates that 196 of the grape concentrate is wasted, 14% of the sugar is lost, and 22% of the lemons cannot be used Compute the standard cost of the ingredients for one gallon of wine. (Round intermediate calculations and final answer t o2 Standard Cost Per Gallon s LINK TO TEXTExplanation / Answer
Answer
3400 ounces of grape concentrate at $0.07 per ounce = 238
Including wasted juice ( 238 * 1.01 ) = 240.38
1014 pounds of granulated sugar at $0.39 per pound = 395..46
Including lost sugar ( 395.46 * 1.14 ) = 450.82
1248 lemons at $0.70 each = 873.60 Including wasted lemons ( 873.60 * 1.22 ) = 1065.79
1560 yeast tablets at $0.22 each = 343.20
2340 nutrient tablets at $0.14 each = 327.60
2600 ounces of water at $0.007 per ounce = 18.20
Total cost per 780 gallon batch = 2445.99
2445.99 / 780 = 3.13 per gallo
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