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

Question

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 50-gallon batch.

Hank estimates that 6% of the grape concentrate is wasted, 12% of the sugar is lost, and 22% 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.)

: $__________

3,500 ounces of grape concentrate at $0.06 per ounce 54 pounds of granulated sugar at $0.43 per pound 55 lemons at $0.78 each 50 yeast tablets at $0.24 each 250 nutrient tablets at $0.16 each 1,500 ounces of water at $0.008 per ounce

Explanation / Answer

standard cost of the ingredients for 50-gallon of wine

Standard cost per gallon of wine = $ 364.95 / 50 = $7.30

Deatils Working Amount ($) Grape concentrate 3,500 ounces * $0.06 210 Granulated sugar 54 pounds * $0.43 23.22 Lemons 55 lemons * $0.78 42.90 Yeast tablets 50 tablets * $0.24 12 Nutrient tablets 250 tablets * $0.16 40 Water 1,500 ounces * $0.008 12 Total Cost for 50-gallon of wine 340.12 Add : Value of wastes Grape concentrate 210 * 6 % 12.60 Granulated sugar 23.22 *12 % 2.79 Lemons 42.90 * 22 % 9.44 Total Cost for 50-gallon of wine 364.95

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