fancy foods company produces and sells canned vegetable juice. the ingredients a

Question

fancy foods company produces and sells canned vegetable juice. the ingredients are first combined in the blending dept and then packed in gallon cans ub the canning department. the following infor pertains to the blending dept for january:

item price per gallon gallons
ingredient A 0.40 10,000.00
ingredient B 0.60 20,000.00
vegetable juice 27,000.00
material loss 3,000.00

conversion cost for the blending dept are 0.55 per gallon for january. determine the cost per gallon of blended vegetable juice before canning.

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