Pike Seafood Company purchases lobsters and processes them into tails and flakes. It sells the lobster tails for $19.9 per pound and the flakes for $14.2 per pound. On average, 100 pounds of lobster are processed into 56 pounds of tails and 27 pounds of flakes, with 17 pounds of waste. Assume that the company purchased 3,600 pounds of lobster for $4 per pound and processed the lobsters with an additional labor cost of $6,700. No materials or labor costs are assigned to the waste. The company sold 1,882 pounds of tails and 884 pounds of flakes.
1- What is the allocated cost of the sold items? The company allocates joint costs on a value basis.
2- What is the allocated cost of the ending inventory? The company allocates joint costs on a value basis.