Dan engles manufactures and sells homemade wine and he

Reference no: EM13608819

Dan Engles 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 $0.04 per ounce 54 pounds of granulated sugar at $0.35 per pound 60 lemons at $0.60 each 50 yeast tablets at $0.25 each 50 nutrient tablets at $0.20 each 2,500 ounces of water at $0.004 per ounce Dan 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.

Reference no: EM13608819

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