Question
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
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 6,000 24,000 30,000 Cost of unroasted beans and packaging per pound $ 4.80 $ 6.50 Other costs: Direct labor $54,000 Indirect materials 27,000 Other overhead 9,000 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.)
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