Pirate Seafood Company purchases lobsters and processes them into tails and flak
ID: 2593407 • Letter: P
Question
Pirate Seafood Company purchases lobsters and processes them into tails and flakes. It sells the lobster tails for $19.80 per pound and the flakes for $15.90 per pound. On average, 100 pounds of lobster are processed into 52 pounds of tails and 27 pounds of flakes, with 21 pounds of waste. Assume that the company purchased 4,000 pounds of lobster for $4 per pound and processed the lobsters with an additional labor cost of $4,200. No materials or labor costs are assigned to the waste. If 1,946 pounds of tails and 1,000 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 4,000 lb. purchase Market Value per 4,000 lb. purchase Percent of Market Value Cost to be allocated Allocated cost 4,000 pound purchase Cost per pound Numerator Denominator % of Mkt Value Lobster Tails 0 Lobster Flakes 0 Totals 0 1) What is the allocated cost of the sold items? Cost per pound Pounds sold Cost of Goods Sold Lobster Tails $0.00 Lobster Flakes $0.00 Totals $0 2) What is the allocated cost of the ending inventory? Cost per pound Pounds in ending inventory Cost of Ending Inventory Lobster Tails $0.00 Lobster Flakes $0.00 Totals $0Explanation / Answer
Yield per 4000lb Purchase Market Value per 4000 lb. Purchase Percent of Market Value Cost to be Allocated Cost to be allocated Allocated Cost 4000 Pound Purchase Cost per Pound Neumarator Denominator % of market value Lobster Tails 2080 41184 41184 58356 70.57% 20200 14256 6.85 Lobster Flakes 1080 17172 17172 58356 29.43% 20200 5944 5.50 3160 58356 100% 20200 Lobster cost (4000 lbs. × $4.00) 16000 Labor cost 4200 Total cost of processed lobsters 20200 What is the allocated cost of the item sold Cost per pound Pounds sold Cost of goods sold Lobster Tails 6.85 1946 13337 Lobster Flakes 5.50 1000 5504 Total 18841 What is the allocated cost of ending inventory Cost per pound Pounds in ending inventory Cost of ending inventory Lobster Tails 6.85 134 918 Lobster Flakes 5.50 80 440 Total 1359