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.
2,880 ounces of grape concentrate at $0.04 per ounce
54 pounds of granulated sugar at $0.55 per pound
60 lemons at $0.85 each
250 yeast tablets at $0.29 each
50 nutrient tablets at $0.14 each
2,700 ounces of water at $0.005 per ounce
Hank estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used.
Required:
Compute the standard cost of the ingredients for one gallon of wine.
Answers: 1
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