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Hnak Itzek manufactures and sells homemade wine also he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch

3,000 ounces of grape concentrate at $0.06 per ounce
54 pounds of granulated sugar at $0.30 per pound
60 lemons at $0.60 each
50 yeast tablets at $0.25 each
50 nutrient tablets at $0.20 each
2,600 ounces of water at $0.005 per ounce

Hank approximations that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used.

Calculate the standard cost of the ingredients for one gallon of wine

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M9720975

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