Question

Pirate Seafood Company purchases lobsters and processes them into tails and flakes. It sells the lobster tails for $20.60 per pound and the flakes for $15.50 per pound. On average, 100 pounds of lobster are processed into 59 pounds of tails and 25 pounds of flakes, with 16 pounds of waste. Assume that the company purchased 3,800 pounds of lobster for $4 per pound and processed the lobsters with an additional labor cost of $5,100. No materials or labor costs are assigned to the waste. If 2,106 pounds of tails and 878 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.)

Yield per 3,800 lb. purchase Market Value per 3,800 lb. purchase Percent of Market Value Cost to be allocated Allocated cost 3,800 pound purchase Cost per pound Numerator Denominator % of Mkt Value Lobster Tails Lobster Flakes Totals 1) What is the allocated cost of the sold items? Cost per pound Pounds sold Cost of Goods Sold Lobster Tails Lobster Flakes Totals 2) What is the allocated cost of the ending inventory? Cost per pound Pounds in ending inventory Cost of Ending Inventory Lobster Tails Lobster Flakes Totals

Answer 1

Allocated cost Cost Cost to be 3,800 pound per Yield per 3,800 lb, purchase Market Value per 3,800 lb. purchase allocated Percent of Market Value purchase pound Denominator Numerator of Mkt Value D-B"C E D/A 2242 a 75.83% 20300 e Lobster Tails 46,185 c 46,185 60,910 15,392 6.87 14,725 d Lobster Flakes 950 b 14,725 60,910 24.17% 20300 e 4,908 5.17 100.00 % Totals 60,910 20,300 1) What is the allocated cost of the sold items? Cost of Goods Sold Cost per pound Pounds sold Lobster Tails 6.87 2106 1459 Lobster Flakes 5.17 878 4.536 Totalc 18.994 2) What is the allocated cost of the ending inventory Pounds in ending inventory ICost of Ending Inventory Cost per pound 136 f Lobster Tails 6.87 934 72 f Lobster Flakes 5.17 372 Totals 1.306 workine 3800 59/100 2242 a b 3800 25/100 950 2242 20.6 46.185 C d 950*15.5 14,725 3800 4+5100 20300 2242-2106 950-878 136 72 Sheet403 Sheet409 Sheet402 Sheet407 Sheet408 Sheet410 Sheet404 Sheet405 Sheet406 ENG 22:34 UK 22/06/2019