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E11-2 Hank Itzek manufactures

Price: $1.99

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 50-gallon batch.
3,000 ounces of grape concentrate at $0.06 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
2,600 ounces of water at $0.005 per ounce
Hank estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and
25% of the lemons cannot be used.

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

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