USA Calculate Standard Cost Per Gallon

Mar 8, 2018
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United States
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 430-gallon batch.

3,800 ounces of grape concentrate at $0.01 per ounce
688 pounds of granulated sugar at $0.54 per pound
688 lemons at $0.71 each
430 yeast tablets at $0.21 each
2,150 nutrient tablets at $0.11 each
1,600 ounces of water at $0.007 per ounce

Hank estimates that 2% of the grape concentrate is wasted, 18% of the sugar is lost, and 32% 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: ???

I got $1,617.72 but it's wrong.



VIP Member
Oct 12, 2011
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United States
I have worked this up but would be interested to see how you came up with such a large value (cant be almost $2,000 for a gallon of wine) and also if you know the right answer so that we can check back to it. Also this should be under Exams and Studying which also requires you show where you think the issue is and what you did.

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