Yield per 3,500 Market Value lb. purchase per 3,500 lb Allocated cost Cost to be

Question

Yield per 3,500 Market Value lb. purchase per 3,500 lb Allocated cost Cost to be 3,500 pound allocated Cost per pound Percent of Market Value purchase purchase Numerator Denominator l % of Mkt Value Lobster Tails Lobster Flakes Totals 1) What is the allocated cost of the sold items? Cost per pound Cost of Goods Sold Pounds sold Lobster Tails Lobster Flakes Totals 2) What is the allocated cost of the ending inventory? Cost per pound Pounds in ending inventory Cost of Ending Inventory Lobster Tails Lobster Flakes Totals

Explanation / Answer

Yield per 3500 purchase Market Value per 3500 lb purchase Percent of Market Value Cost to be allocated Allocated Cost 3500 pound purchase cost per pound Numerator Denominator % of Market Values Lobster Tails 62% *3500 =2170 $20.60* 2170 =$44702 $44,702 $58,814 76% $20,100 76%*$20100 = $15276 $15276/2170 =$7.04 Lobster Flakes 28%*3500 =980   $14.40* 980 =$14112 $14,112 $58,814 0.239942871 $20,100 24%*$20100=$4824 $4824/980 =$4.92 Waste     10%*3500=350 Total 3,500 $58,814 100% $20,100 Computation of Total Cost Cost of Raw Material ( 3500 Pound *$4) $14,000.00 Cost of Labour $6,100.00 Total Cost $20,100.00 Part-1 Allocated Cost of Sold Item Cost Per Pound Pounds Sold Cost of Goods Sold Lobster Tails $7.04 2,039 $14,354.56 Lobster Flakes $4.92 902 $4,437.84 Total $18,792.40 Part-2. Allocated Cost of Ending Inventory Cost Per Pound Pounds In ending Inventory Cost of Ending Inventory Lobster Tails $7.04 131 $922 Lobster Flakes $4.92 78 $384 Totals $1,306

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