Question

Pirate Seafood Company purchases lobsters and processes them into tails and flakes. It sells the lobster tails for $20.00 per pound and the flakes for $15.20 per pound. On average, 100 pounds of lobster are processed into 52 pounds of tails and 24 pounds of flakes, with 24 pounds of waste. Assume that the company purchased 3,400 pounds of lobster for $4 per pound and processed the lobsters with an additional labor cost of $7,200. No materials or labor costs are assigned to the waste. If 1,620 pounds of tails and 726 pounds of flakes are sold, calculate the allocated cost of the sold items and the allocated cost of the ending inventory. The company allocates joint costs on a value basis. (Round your answers to nearest whole number. Round cost per pound answers to 2 decimal places.)

Answer 1

Elep: input output (poundi 100 pounds of lobster se pounds of tails 2 76 24 pounds of flakes 24 pound of wash I 24 100 yield for 3400 pounds of lobster 76:24 tails& flake waste - 3400x244 100 3u00X 100 = 816 pound +2584 pound e output 2584 pound (52 pounds d tails 24 pounds, of flaker 52:24 9584x24 9584x52 76 76 = 816 pounds of flakes 21768 pounds output (produced) tails = 1768 pounds flakes - 816 pound 2584 pounds

Step: .2 $13600 material (2400 pounds of lobslev x $4) = allout Labour (3400 pounds of Lobster x $7.200) = $24480 $ 38080 total cost step: 3 tails & flakes assigning total cost to $38080 tails flake $38080 x 816 $38080x1768 2534 2584 = $19025 -$26055 step: y cost per pour cost per pound (6/6) yield (pouds) Cost ca) (b) 1768 $26055 $14074 lobster tails Lobster flakes 816 $12.95 $14.74

to units sold total cost allocated Cost of good sold caxb pounds sold Cost perpound ca) CA $14.74 1620 Lobster tails $23879 $1070) 726 Lobster flake, $14.74 total cost allocated to ending inventory en poumde pardosed ending inventory lobster tails - 1768- 1620 = 148 pounds Lobsler Flakes : 816-726 = 90 pounds cosi per pound ending inventory cost of ending inventar lobsler tails $11.74 148 lobsler flake $14.74 90 2181 1327