Exercise 25-2 Hank Itze menufactures and sels homemade irs, and he wants to devi

Question

Exercise 25-2 Hank Itze menufactures and sels homemade irs, and he wants to devielop a standard cost par pidkn, The followng are requred for produaction of a s2o-gelon irch 3.400 punces of grepe concentrate at 90.06 per ounce T2 pounds of granuated sugar at 50.53 per pound ,300 uces af witer $0.007 per ounce Krk est meres trot 5%, ofthe grape concernrate maid, la, rt the s gr 1st od 2% of the lenses ant be used Compute the standord cost of the ingrederns for one gal on of wine. (Round intermeñate cakoations d vial eower to 2 decil pces, eg .25) Stancard Cost Per Galion

Explanation / Answer

Total Units Ingredient Cost p units Useable Useable Qty Amount 3400 ounces Grape concentrate 0.06 95% 3230       193.80 572 pound sugar 0.53 86% 491.92       260.72 832 Nos lemon 0.8 73% 607.36       485.89 2080 Tablets 0.24 2080       499.20 2080 Tablets Nutrient 0.12 2080       249.60 1300 ounces water 0.007 1300            9.10    1,698.31       520.00 Standard cost per gallon            3.27

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