Exercise 11-2 Hank Itzek manufactures and sells homemade wine, and he wants to d

Question

Exercise 11-2

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 170-gallon batch.

Hank estimates that 1% of the grape concentrate is wasted, 16% of the sugar is lost, and 26% 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.)

2,800 ounces of grape concentrate at $0.04 per ounce 323 pounds of granulated sugar at $0.47 per pound 238 lemons at $0.71 each 340 yeast tablets at $0.26 each 850 nutrient tablets at $0.10 each 2,700 ounces of water at $0.005 per ounce

Explanation / Answer

Standard cost per gallon 4.17

grape concentrate 2800 0.04 2800*0.04/0.99 113.13 granulated sugar 323 0.47 323*0.47/0.84 180.73 lemons 238 0.71 238*0.71/0.74 228.35 Yeast tablets 340 0.26 340*0.26 88.40 nutrient tablets 850 0.1 850*0.1 85.00 ounces of water 2700 0.005 2700*.005 13.50 709.11 170 gallon per batch 709.11/170 4.17

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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