Tony Covelli manufactures and sells homemade wine, and he wants to develop a standard cost per liter.

Question:

Tony Covelli manufactures and sells homemade wine, and he wants to develop a standard cost per liter. The following are required for production of a 50-liter batch.

3,000 grams of grape concentrate at €0.06 per gram 

54 kilograms of granulated sugar at €0.30 per kilogram 

60 lemons at €0.60 each

50 yeast tablets at €0.25 each

50 nutrient tablets at €0.20 each

2,600 grams of water at €0.005 per gram

Tony estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 25% of the lemons cannot be used.


Instructions

Compute the standard cost of the ingredients for one liter of wine. (Round to two decimal places.)

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Accounting Principles

ISBN: 978-1119419617

IFRS global edition

Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt

Question Posted: