Question

Question 1 --/18 View Policies Current Attempt in Progress 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 590-gallon batch. 3,300 ounces of grape concentrate at $0.09 per ounce 649 pounds of granulated sugar at $0.47 per pound 1,121 lemons at $0.67 each 1,180 yeast tablets at $0.28 each 590 nutrient tablets at $0.14 each 2,100 ounces of water at $0.005 per ounce Hank estimates that 5% of the grape concentrate is wasted, 18% of the sugar is lost, and 30% 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.) Standard Cost Per Gallon $

Answer 1

Working Notes ;

A	Particulars	B		C = A*B
3,300	Ounce of grape concentrated at	$0.09	Per Ounce	$297
649	Pounds of granulated sugar	$0.47	Per Pound	$305.03
1121	Lemon at	$0.67	each	$751.07
1180	Yeast tablets at	$0.28	each	$330.40
590	Nutrient tables at	$0.14	each	$82.60
2100	Ounces of water at	$0.005	per ounce	$10.50
	Total Cost of top gallons			$1,776.60
	Waste Values
	Grape concentrate wasted ($297 * 5%)	5%		$14.85
	Sugar lost ($305.03 * 18%)	18%		$54.91
	Lemons at cannot be used ($751.07 * 30%)	30%		$225.32
	Cost of waste and loss materials			$ 295.08
	Total Cost including waste and lost			$2,071.68
	Standard Cost Per Gallon			$3.51