Hnak Itzek manufactures and sells homemade wine, and he wants to develop a stand

Question

Hnak Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 30-gallon batch. 3,500 ounces of grape concentrate at $0.03 per ounce 51 pounds of granulated sugar at $0.37 per pound 35 lemons at $0.80 each 60 yeast tablets at $0.20 each 120 nutrient tablets at $0.16 each 2,600 ounces of water at $0.007 per ounce Hank estimates that 5% of the grape concentrate is wasted, 17% of the sugar is lost, and 21% of the lemons cannot be used. Compute the standard cost of the ingredients for one gallon of wine.

Explanation / Answer

Hnak Iztek All Amounts in $ Cost for a 30-gallon batch (Net of Wastages) Product Qty Rate $ Amount $ Grape Concentrate 3,325 0.03 99.75 ounces per ounce Granulated Sugar 42.33 0.37 15.6621 pounds per pound Lemons 27.65 0.8 22.12 Yeast 60 0.2 12 tablets per tablet Nutrient Tablets 120 0.16 19.2 Water 2,600 0.007 18.2 ounces per ounce Total Cost for a 30-gallon batch 186.9321 Cost per gallon of wine produced 6.23107

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