Joint cost allocation, insurance settlement. Quality Chicken grows and processes chickens. @ Each chicken is disassembled into

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Joint cost allocation, insurance settlement. Quality Chicken grows and processes chickens. @

Each chicken is disassembled into five main parts. Information pertaining to production in 1a aint casts ailucaiedta July 2009 is:image text in transcribed

Joint cost of production in July 2009 was $50.
A special shipment of 40 kilograms of breasts and 15 kilograms of wings has been destroyed in a fire. Quality Chicken’s insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Quality Chicken to use a joint cost allocation method. The splitoff point is assumed to be at the end of the production process.
REQUIRED 1. Compute the cost of the special shipment destroyed using

a. Sales value at splitoff method

b. Physical-measure method (kilograms of finished product)
2. What joint cost allocation method would you recommend Quality Chicken use? Explain.LO1

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Related Book For  book-img-for-question

Cost Accounting A Managerial Emphasis

ISBN: 9780135004937

5th Canadian Edition

Authors: Charles T. Horngren, Foster George, Srikand M. Datar, Maureen P. Gowing

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