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Tony Rondeli 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 after waste, spoilage and lost items.
3,050 ounces of grape concentrate at $0.060 per ounce56 pounds of granulated sugar at $0.39 per pound63 lemons at $0.61 each50 yeast tablets at $0.27 each50 nutrient tablets at $0.23 each2,650 ounces of water at $0.009 per ounce
Tony estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 20% of the lemons cannot be used.
Compute the standard cost of the ingredients for one gallon of wine.
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