Ocean Seafood Company purchases lobsters and processes them into tails and flakes. It sells the lobster tails for $20 per pound and the flakes for $15 per pound. On average, 100 pounds of lobster are processes into 57 pounds of tails and 24 pounds of flakes, with 19 pounds of waste. Assume that the company purchased 3,000 pounds of lobster for $6.00 per pound and processes the lobsters with an additional labor cost of $1,800. No materials or labor costs are assigned to the waste. What is the cost to process tails and flakes and the cost per pound

Respuesta :

Answer:

Ocean Seafood Company

The cost to process tails and flakes = $19,800

The cost per pound = $8.15

Explanation:

a) Data and Calculations:

                                                            Tails       Flakes   Waste   Total

Sales price per pound                          $20           $15

Ratio of processing 100 pounds            57             24       19

Purchase of 3,000 pounds                 1,710           720   570      2,430

Cost of 3,000 pounds at $6each $12,667      $5,333       0  $18,000

Labor cost                                           1,267           533       0      1,800

Total cost                                       $13,934      $5,866       0 $19,800

Cost per pound                               $8.15           $8.15              $8.15