Compute cost unit of each brand of coffee produced in feb.

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Reference no: EM13515628

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

5,000

20,000

25,000

Cost of unroasted beans and packaging per pound

$4

$6

 

Other costs:

 

 

 

Direct labor

 

 

$ 50,000

Indirect materials

 

 

15,000

Other overhead

 

 

100,000

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.

Reference no: EM13515628

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