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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.3,000 ounces of grape concentrate at $0.06 per ounce54 pounds of granulated sugar at $0.30 per pound 60 lemons at $0.60 each50 yeast tablets at $0.25 each50 nutrient tablets at $0.20 each2,600 ounces of water at $0.005 per ounceHank estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used.
Instructions
Compute the standard cost of the ingredients for one gallon of wine. (Carry computations to two decimal places.)
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