Organic Grounds produces two brands of coffee: Star and Bucks’ The two coffees are produced in one factory using the same production process. The only difference between the two coffees is the cost of the unroasted coffee beans. The following data are available for February: Star Bucks Total Number of pounds of coffee produced 13,000 52,000 65,000 Cost of unroasted beans and packaging per pound $ 4,000 $ 6.90 Other costs: Direct labor $117,000 Indirect materials 58,500 Other overhead 19,500 Required: Organic Grounds uses operations costing and assigns conversion costs based on the number of pounds of coffee produced. Compute the cost unit of each brand of coffee produced in February. (Do not round intermediate calculations. Round “Cost per pound” to 2 decimal places.) Star Bucks Total Conversion cost __________ __________ $ 0 Materials cost ___________ __________ ____________ Total cost ___________ ___________ ____________ Number of pounds ___________ ___________ _____________ Cost per pound ___________ ___________
Organic Grounds produces two brands of coffee: Star and Bucks’ The two coffees are produced in one factory using the same production process. The only difference between the two coffees is the cost of the unroasted coffee beans. The following data are available for February:
Star Bucks Total
Number of pounds of coffee produced 13,000 52,000 65,000
Cost of unroasted beans and packaging per pound $ 4,000 $ 6.90
Other costs:
Direct labor $117,000
Indirect materials 58,500
Other overhead 19,500
Required:
Organic Grounds uses operations costing and assigns conversion costs based on the number of pounds of coffee produced. Compute the cost unit of each brand of coffee produced in February. (Do not round intermediate calculations. Round “Cost per pound” to 2 decimal places.)
Star Bucks Total
Conversion cost __________ __________ $ 0
Materials cost ___________ __________ ____________
Total cost ___________ ___________ ____________
Number of pounds ___________ ___________ _____________
Cost per pound ___________ ___________ _____________
Step by step
Solved in 2 steps
