George Clark manufactures and sells homemade wine, and he wants to develop a standard cost per litre.
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Question:
George Clark manufactures and sells homemade wine, and he wants to develop a standard cost
per litre. The following are required for production of a litre batch:
litres of grape concentrate at $ per litre
kg of granulated sugar at $ per kilogram
lemons at $ each
yeast tablets at $ each
nutrient tablets at $ each
litres of water at $ per litre
George estimates that of the grape concentrate is wasted, of the sugar is lost, and of
the lemons cannot be used.
Calculate the standard cost of the ingredients for one litre of wine. Round intermediate calculations
and final answer to decimal places, eg
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