edugen.wileyplus.com S Weygandt, Managerial Accounting, 7e ACCT ( ctice Assignme
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edugen.wileyplus.com S Weygandt, Managerial Accounting, 7e ACCT ( ctice Assignment Gradebook ORION Downloadable eTextbook ment CALCULATOR FULL SCREEN PRINTER VERSION BACK Exercise 11-2 nufactures and sells homemade wine, and he wants to develop a standard cost per gallion. The following are 840-gaillon batch. 2,500 ounces of grape concentrate at $0.04 per ounce 1,260 pounds of granulated sugar at $0.43 per pound 1,008 lemons at $0.72 each 2,520 yeast tablets at $0.28 each 1,680 nutrient tablets at $0.11 each 3,000 ounces of water at $0.003 per ounce Hank estimates that 2% of the grape concentrate is wasted, 12% of the sugar is lost, and 34% 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 SAVE FOR LATER SUBMIT ANSWER Question Attempts: 0 of 3 used Version 424.2 | 2000-2017John Wiley &Sons;, Inc. All Rights Reserved. A Division of ehnMeyASon.le cy.PolicyExplanation / Answer
CALCULATION OF STANDARD COST:
WORKING NOTES:
1) 2500 ounces of grape concentrate is required for 840 gallons, there is a wastage of 2%, so to get standard quantity for 840 gallons we should do reverse calculation (i.e 2500*100/98) we get 2551.02 ounces.
2)1260 pounds of granulated sugar is required for 840 gallons, there is 12% of loss, to get standard quantity for 840 gallons we should do reverse calculation (i.e 1260*100/88) we get 1431.82 pounds.
3)1008 lemons are required for 840 gallons, 34% of lemons cannot be used, so to get standard quantity for 840 gallons we should do reverse calculation (i.e 1008*100/66) we get 1527 lemons.
PARTICULARS COMPUTATION AMOUNT (IN $) Grape Concentrate 2551.02 Ounces* $0.04 102.04 Granulated Sugar 1431.82 Pounds* $0.43 615.68 Lemons 1527 Lemons* $0.72 1099.44 Yeast Tablets 2520 Tablets* $0.28 705.60 Nutrient Tablets 1680 Tablets* $0.11 184.80 Water 3000 Ounces* $0.003 9.00 Total Standard Cost 2716.56 Number of Gallons 840 Standard Cost Per Gallon $2716.56/840 3.23Related Questions
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