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 $16.00 per pound. On average, 100 pounds of lobster are processed into 59 pounds of tails and 27 pounds of flakes, with 14 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 $8,000. No materials or labor costs are assigned to the waste. If 1,858 pounds of tails and 829 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 3,400 lb. purchase Allocated cost 3,400 pound purchase Market Value Cost per pound Cost to be Percent of Market Value per 3,400 Ib. purchase allocated Denominator % of Mkt Value Numerator Lobster Tails 2,006 $ 40,120 40,120 54,808 73.20 Lobster Flakes 14,688 918 14,688 54,808 26.80 Totals 54,808 100 1) What is the allocated cost of the sold items? Cost per pound Cost of Goods Sold Pounds sold Lobster Tails $ 0.00 Lobster Flakes 0.00 Totals 2) What is the allocated cost of the ending inventory? Pounds in ending inventory Cost of Ending Inventory Cost per pound Lobster Tails $ 0.00 S Lobster Flakes 0.00 Totals 0
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 $16.00 per pound. On average, 100 pounds of lobster are processed into 59 pounds of tails and 27 pounds of flakes, with 14 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 $8,000. No materials or labor costs are assigned to the waste. If 1,858 pounds of tails and 829 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 3,400 lb. purchase Allocated cost 3,400 pound purchase Market Value Cost per pound Cost to be Percent of Market Value per 3,400 Ib. purchase allocated Denominator % of Mkt Value Numerator Lobster Tails 2,006 $ 40,120 40,120 54,808 73.20 Lobster Flakes 14,688 918 14,688 54,808 26.80 Totals 54,808 100 1) What is the allocated cost of the sold items? Cost per pound Cost of Goods Sold Pounds sold Lobster Tails $ 0.00 Lobster Flakes 0.00 Totals 2) What is the allocated cost of the ending inventory? Pounds in ending inventory Cost of Ending Inventory Cost per pound Lobster Tails $ 0.00 S Lobster Flakes 0.00 Totals 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $16.00 per pound. On average, 100 pounds of lobster are processed into 59 pounds of tails and 27 pounds of flakes, with 14 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 $8,000. No materials or labor costs are assigned to the waste. If 1,858 pounds of tails and 829 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.)
Transcribed Image Text: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 $16.00 per pound. On average, 100 pounds of lobster are processed into 59 pounds of tails and 27 pounds of flakes,
with 14 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 $8,000. No materials or labor costs are assigned to the waste. If 1,858 pounds of tails and 829 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
3,400 lb.
purchase
Allocated cost
3,400 pound
purchase
Market Value
Cost per
pound
Cost to be
Percent of Market Value
per 3,400 Ib.
purchase
allocated
Denominator
% of Mkt Value
Numerator
Lobster Tails
2,006 $
40,120
40,120
54,808
73.20
Lobster Flakes
14,688
918
14,688
54,808
26.80
Totals
54,808
100
1) What is the allocated cost of the sold items?
Cost per
pound
Cost of
Goods Sold
Pounds sold
Lobster Tails
$
0.00
Lobster Flakes
0.00
Totals
2) What is the allocated cost of the ending inventory?
Pounds in
ending
inventory
Cost of
Ending
Inventory
Cost per
pound
Lobster Tails
$
0.00
S
Lobster Flakes
0.00
Totals
0
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