unit cost 461304

The Pattia Winery is one of the finest wineries in the country. One of its famous products is a red wine called Old Vines. Recently, management has become concerned about the increasing cost of making Old Vines and needs to determine if the current selling price of $10 per bottle is adequate. The winery wants to achieve a 25 percent gross profit on the sale of each bottle. The following information is given to you for analysis:

Compute the prime costs per unit and the conversion costs per unit. Round your answer to two decimal places. If an amount box does not require an entry, leave it blank.

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Prime Costs Conversion Costs

Direct materials $ $

Direct labor $ $

Overhead $ $

Totals $ $

Batch size 10,550

Cost

Direct Material

Olen grapes 22,155

Chancellor grape 9,495

Bottles 5,275

Total direct materials costs $36,925

Direct Labor

Pickers 2,110

Crusher 422

Processor 8,440

Bottler 13,293

Total direct labor costs $24,265

Overhead

Deprec. Equip 2,743

Deprec. build 5,275

Utilities 1,055

Indirect labor 6,330

Supervison 7,385

Supplies 9,917

Repairs 1,477

Misc 633

Total overhead cost $34,815

Total Production cost $96,005

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