Calculate Standard Cost Per Gallon

USA Discussion in 'Exams and Studying' started by taylor deal, Apr 22, 2018.

  1. taylor deal

    taylor deal

    Mar 8, 2018
    Likes Received:
    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.
    taylor deal, Apr 22, 2018
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  2. taylor deal

    bklynboy VIP Member

    Oct 12, 2011
    Likes Received:
    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.
    bklynboy, Apr 23, 2018
    Becky likes this.
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