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Organic Grounds produces two brands of coffee: Star and Bucks. The two coffees are produced in one factory using the same production process. The
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: Number of pounds of coffee produced Other costs: Direct labor Indirect materials Other overhead Star 8,000 Cost of unroasted beans and packaging per pound Bucks 32,000 $ 4.90 $ 7.00 Total 40,000 $72,000 36,000 12,000 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.) Star Bucks Total Conversion cost $ 0 Materials cost Total cost Number of pounds Cost per pound
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