The allocated cost of ending inveotory


Cape Cod 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 the company purchased 2,400 pounds of lobster for $4.50 a pound and processed the lobsters with an additional labor cost of $1,800. No materials or labor cost are assigned to the waste. If 1,096 pounds of tails an 324 pound of flakes are sold, what is the:

1) allocated cost of sold items and

2) the allocated cost of ending inveotory?

The company allocates joint costs on a market value basis. Round to the nearest penny. Show work.

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Accounting Basics: The allocated cost of ending inveotory
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