Answered: production process. The only difference…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Transcribed Image Text:Organic Grounds produces two brands of coffee: Star and Bucks. The two coffees are produced in one factory using the same production process. The only difference between the two coffees is the cost of the unroasted coffee beans. For February the following data is available: Number of pounds of coffee produced Cost of unroasted beans and packaging per pound $ Other costs: direct labor Indirect materials Other general expenses conversion cost Cost of materials total cost number of pounds cost per pound star Star Dollars 5,000 Required: Organic Grounds uses operations costing and assigns conversion costs based on the number of pounds of coffee produced. Calculate the unit cost of each brand of coffee produced in February. (Do not round intermediate calculations. Round "cost per pound" to 2 decimal places.) Dollars 20,000 4.70 $ 6.90 total Total 25,000 $60,000 30,000 10,000

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