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Compute the standard cost of the ingredients for one gallon

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Question - Pane Corp. manufactures and sells a nutrition drink for children. It wants to develop a standard cost per gallon. The following are required for production of a 100 gallon batch:

1,960 ounces of lime Kool-Drink at $.12 per ounce40 pounds of granulated sugar at $.60 per pound63 kiwi fruit at $.50 each100 protein tablets at $.90 each4,000 ounces of water at $.003 per ounce

Pane estimates that 2% of the lime Kool-Drink is wasted, 20% of the sugar is lost, and 10% of the kiwis cannot be used.

Compute the standard cost of the ingredients for one gallon of the nutrition drink.

Reference no: EM131761416

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