# standard cost

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

https://brainmass.com/math/discrete-structures/standard-cost-305871

#### Solution Summary

Compute the standard cost of the ingredient for one gallon of wine.