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 780-gallon batch.

3,400 ounces of grape concentrate at $0.07 per ounce

1,014 pounds of granulated sugar at $0.39 per pound

1,248 lemons at $0.70 each

1,560 yeast tablets at $0.22 each

2,340 nutrient tablets at $0.14 each

2,600 ounces of water at $0.007 per ounce

Hank estimates that 1% of the grape concentrate is wasted, 14% 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.)

Standard Cost Per Gallon

$enter the standard cost of the ingredients for one gallon of wine rounded to 2 decimal places

Please point out the final answer!

Answer 1