Exercise 23-2 Your answer is incorrect. Try again. Hank Itzek manufactures and s

Question

Exercise 23-2 Your answer is incorrect. Try again. 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 20-gallon batch. 2,300 ounces of grape concentrate at $0.03 per ounce 32 pounds of granulated sugar at $0.54 per pound 37 lemons at $0.71 each 40 yeast tablets at $0.21 each 80 nutrient tablets at $0.16 each 2,400 ounces of water at $0.008 per ounce Hank estimates that 1% of the grape concentrate is wasted, 10% 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 8.16

Explanation / Answer

Std cost of Ingrdient: Grape Concentrate: (2300/99*100 )*0.03 : 69.7 Granulated sugar (32/90*100)*0.54: 19.2 Lemons (37/70*100)*0.71 37.53 Yeast tablets (40 @ 0.21) 8.4 Nutrient tablet (80 @ 0.16) 12.8 Water (2400 @ 0.008) 19.2 Std cost of Ingredient per unit 166.83

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