E25-2 Tony Rondeli manufactures and sells homemade wine, and he wants to develop

Question

E25-2 Tony Rondeli manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch after waste, spoilage and lost items. 3,000 ounces of grape concentrate at $0.04 per ounce 54 pounds of granulated sugar at $0.35 per pound 60 lemons at $0.60 each 50 yeast tablets at $0.25 each 50 nutrient tablets at $0.20 each 2,500 ounces of water at $0.004 per ounce Tony estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 20% of the lemons cannot be used. Instructions Compute the standard cost of the ingredients for one gallon of wine. (Round computations to 2 decimal places, e.g. 10.50.)

Explanation / Answer

Take your original list of ingredient and 'add' in the amount of waste that is stated for each. Take your new list of ingredients and calculate the cost for each of them (multiply the total quantity of an item by the 'unit' cost.) Then add up the total. That is for a 50 gallon batch. Divide that total by 50 for the single gallon cost.

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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