Question

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

Answer 1

The cost to process lobster tails and flakes is $19,800, with a cost per pound of $244.44.

Step-by-step explanation:

To calculate the cost to process lobster tails and flakes, we need to consider the cost of lobster, labor cost, and the weight of tails and flakes produced.

Let's start by calculating the cost of the lobster. Ocean Seafood Company purchased 3,000 pounds of lobster for $6.00 per pound, so the cost of the lobster is 3,000 pounds * $6.00/pound = $18,000.

Next, we need to calculate the weight of tails and flakes produced. On average, 100 pounds of lobster are processed into 57 pounds of tails and 24 pounds of flakes. Therefore, the total weight of tails and flakes produced is 57 pounds + 24 pounds = 81 pounds.

Now we can calculate the cost per pound. The total cost to process tails and flakes is the sum of the cost of lobster ($18,000) and labor cost ($1,800), which is $18,000 + $1,800 = $19,800. The cost per pound is then $19,800 / 81 pounds = $244.44 per pound.

Answer 2

Ocean Seafood Company

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

The cost per pound = $8.15

Step-by-step 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