Coronado Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following arerequired for production of a 50-gallon batch.2,375 ounces of grape concentrate at $0.04 per ounce54 pounds of granulated sugar at $0.55 per pound60 lemons at $0.65 each150 yeast tablets at $0.29 each200 nutrient tablets at $0.14 each2,800 ounces of water at $0.005 per ounceCoronado estimates that 5% 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. (Round intermediate calculations and final answer to 2 decimal places,eg. 1.25.)Standard Cost Per Gallon $s

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Answered: Coronado Itzek manufactures and sells…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Anne Sugar makes large ceramic pots for use in outdoor landscaping. She currently has two models, one square and the other round. Because of the size of Anne's creations, only one pot can be fired in the kiln at a time. Information about each model follows: Sales price Variable cost Firing time Round $ 130 $ 46 3.5 hours Assume Anne can sell as many pots as she can create but is limited as to the number of hours that the kiln can be run. Square $ 98 $ 28 Contribution Margin per Unit Contribution Margin per Hour 2.5 hours Required: 1. Compute the contribution margin per unit and contribution margin per hour of firing time. Square Ceramic Pot Round Ceramic Pot 2. Which type of pot should Anne produce to maximize her short-term profit? Which type of pot should Anne produce
bottles that can be sold externally (to soft-drink and juice bottlers) or internally to Asgard Farm's Jams Division. Sales and cost data on a case of 24 basic 12- ounce bottles are as follows: Unit selling price $3.25 Unit variable cost $1.15 Unit product fixed cost* $0.60 Practical capacity in cases 550,000 *$330,000/550,000 During the coming year, the Glassware Division expects to sell 420,000 cases of this bottle. The Jams and Jellies Division currently plans to buy 113,140 cases on the outside market for $3.25 each. Bella Howard, manager of the Glassware Division, approached Paul Vining, manager of the Jams and Jellies Division, and offered to sell the 113,140 cases for $3.20 each. Bella explained to Paul that she can avoid selling costs of $0.14 per case by selling internally and that she would split the savings by offering a $0.05 discount on the usual price. Required: 1. What is the minimum transfer price that the Glassware Division would be willing to accept? Round to the…
Chris Jackson manufactures and sells homemade wine, and he wants to develop a standard cost per litre. The following are required for production of a 150-litre batch: 72.00 litres of grape concentrate at $1.35 per litre 20.25 kg of granulated sugar at $0.60 per kilogram 43.50 lemons at $0.60 each 37.50 yeast tablets at $0.25 each 37.50 nutrient tablets at $0.20 each 54.75 litres of water at $0.10 per litre Chris estimates that 4% of the grape concentrate is wasted, 10% of the sugar is lost, and 20% 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 3 decimal places, eg. 1.251.) Standard cost of the ingredients for one litre of wine
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Zachary Fruit Drink Company planned to make 202,000 containers of apple juice. It expected to use two cups of frozen apple concentrate to make each container of juice, thus using 404,000 cups of frozen concentrate. The standard price of one cup of apple concentrate is $0.23. Zachary actually paid $115,385 to purchase 412,090 cups of concentrate, which was used to make 203,000 containers of apple juice. Required: b. Compute the actual price per cup of concentrate. (Round your answer to 2 decimal places.) c. Compute the standard quantity (number of cups of concentrate) required to produce the containers. d. Compute the materials price variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance). Round "Price variance" to 2 decimal places.) e. Compute the materials usage variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance). Round "Usage variance"…
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A 16-gallon beer keg yields about 200 12-oz servings. What would the beverage cost be ona keg costing $85.00? How about premium beer at $150.00? What would the selling pricesbe with 20 percent and 30 percent cost ratios?
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* Your answer is incorrect. 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. 2,400 ounces of grape concentrate at $0.05 per ounce 54 pounds of granulated sugar at $0.40 per pound 60 lemons at $0.60 each 100 yeast tablets at $0.26 each 250 nutrient tablets at $0.15 each 2,900 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. (Round intermediate calculations and final answer to 2 decimal places, e.g. 1.25.) Standard Cost Per Gallon $ 7.42

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