Please help me with this question, not clear and i would love a full break down.

Question

Please help me with this question, not clear and i would love a full break down.

Pirate Seafood Company purchases lobsters and processes them into tails and flakes. It sells the lobster tails for $21 per pound and the flakes for $14 per pound. On average, 100 pounds of lobster are processed into 52 pounds of tails and 22 pounds of flakes, with 26 pounds of waste. Assume that the company purchased 2,400 pounds of lobster for $4.50 per pound and processed the lobsters with an additional labor cost of $1,800. No materials or labor costs are assigned to the waste. If 1,096 pounds of tails and 324 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.

Explanation / Answer

Answer:

Answer:1)

Answer:2)

Yield per 2,400 lb. Purchase Market Value per 2,400 lb. Purchase Percent of Market Value Cost to be allocated Allocated Cost 2,400 Pound Purchase Cost per pound Numerator Denominator % of MKT value Lobster Tails 1248 26208 26208 33600 78.00% 12600 9828 7.88 Lobster Flakes 528 7392 7392 33600 22.00% 12600 2772 5.25 Totals 33600 100% 12600

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