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Problem 1 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 50-gallon batch. 43,000 ounces of grape concentrate at P 0.40 per ounce 54 pounds of granulated sugar at P 0.30 per pound 60 lemons at P 0.60 each 50 yeast tablets at P 0.25 each 2,500 ounces of water at P 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. Required: Compute the standard cost of the ingredients for one gallon of wine.​

Sagot :

sethartiolamarcelo

Answer:

To compute the standard cost of the ingredients for one gallon of wine, we need to calculate the total cost of each ingredient for a 50-gallon batch and then divide by 50 to get the cost per gallon.

1. Grape concentrate:

Total cost = 43,000 ounces * P0.40/ounce = P17,200

Wastage = 4% of 43,000 ounces = 1,720 ounces

Usable grape concentrate = 43,000 ounces - 1,720 ounces = 41,280 ounces

Cost per gallon = P17,200 / 50 gallons = P344 per gallon

Adjusted cost per gallon = P344 / 41,280 ounces = P0.0083 per ounce

2. Granulated sugar:

Total cost = 54 pounds * P0.30/pound = P16.20

Loss = 10% of 54 pounds = 5.4 pounds

Usable sugar = 54 pounds - 5.4 pounds = 48.6 pounds

Cost per gallon = P16.20 / 50 gallons = P0.324 per gallon

Adjusted cost per gallon = P0.324 / 48.6 pounds = P0.0067 per pound

3. Lemons:

Total cost = 60 lemons * P0.60/lemon = P36

Loss = 20% of 60 lemons = 12 lemons

Usable lemons = 60 lemons - 12 lemons = 48 lemons

Cost per gallon = P36 / 50 gallons = P0.72 per gallon

Adjusted cost per gallon = P0.72 / 48 lemons = P0.015 per lemon

4. Yeast tablets:

Total cost = 50 tablets * P0.25/tablet = P12.50

Cost per gallon = P12.50 / 50 gallons = P0.25 per gallon

Adjusted cost per gallon = P0.25 / 50 tablets = P0.005 per tablet

5. Water:

Total cost = 2,500 ounces * P0.003/ounce = P7.50

Cost per gallon = P7.50 / 50 gallons = P0.15 per gallon

Adjusted cost per gallon = P0.15 / 2,500 ounces = P0.00006 per ounce

Adding the adjusted costs for each ingredient:

Standard cost per gallon = P0.0083 (grape concentrate) + P0.0067 (sugar) + P0.015 (lemons) + P0.005 (yeast tablets) + P0.00006 (water) = P0.03506 per gallon

So, the standard cost of the ingredients for one gallon of wine is approximately P0.0351.

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