Question

Pirate Seafood Company purchases lobsters and processes them into tails and flakes. It sells the lobster tails for $19.90 per pound and the flakes for $14.50 per pound. On average, 100 pounds of lobster are processed into 58 pounds of tails and 28 pounds of flakes, with 14 pounds of waste. Assume that the company purchased 3,100 pounds of lobster for $4 per pound and processed the lobsters with an additional labor cost of $9,300. No materials or labor costs are assigned to the waste. If 1,654 pounds of tails and 798 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