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.
| 2,900 ounces of grape concentrate at $0.08 per ounce |
| 65 pounds of granulated sugar at $0.48 per pound |
| 80 lemons at $0.79 each |
| 150 yeast tablets at $0.28 each |
| 50 nutrient tablets at $0.10 each |
| 1,700 ounces of water at $0.001 per ounce |
Hank estimates that 2% of the grape concentrate is wasted, 13% of the sugar is lost, and 25% of the lemons cannot be used.
Compute the standard cost of the ingredients for one gallon of wine. (Carry computations to two decimal places.) (Round unit costs to 2 decimal places, e.g. 2.75.)
| Standard Cost Per Gallon |
|
$ |