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# standard cost

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Raul Mondesi manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a
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 \$0.30 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 \$0.003 per ounce
Raul estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 20%
of the lemons cannot be used.

Instructions:
Compute the standard cost of the ingredient for one gallon of wine. (Carry computations to two decimal places.)

Ingredient "Amount
Per
Gallon" "Unit
of
Measure" "Standard
Waste" Notes "Standard
Usage" "Standard
Price" "Standard
Cost Per
Gallon"

Ingredient Amount UOM Percentage (a) Formula Amount Formula
Ingredient Amount UOM Percentage (b) Formula Amount Formula
Ingredient Amount UOM Percentage (c) Formula Amount Formula
Ingredient Amount UOM Percentage Formula Amount Formula
Ingredient Amount UOM Percentage Formula Amount Formula
Ingredient Amount UOM Percentage Formula Amount Formula
Formula
Work area as desired
Work area as desired
Work area as desired
Work area as desired