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1. Compute the cost of the special shipment destroyed using the following: a. Sales value at split-off method b. Physical-measure method (pounds of the finished

1.

Compute the cost of the special shipment destroyed using the following:

a.

Sales value at split-off method

b.

Physical-measure method (pounds of the finished product)

2.

What joint-cost-allocation method would you recommend Quality Chicken use? Explain.

Please show work and calucations

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Quality Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2017 is as follows: (Click the icon to view the information.) Joint cost of production in July 2017 was $80. A special shipment of 40 pounds of breasts and 5 pounds 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. Read the requirements Requirement 1a. Compute the cost of the special shipment destroyed using the sales value at splitoff method. Complete the table below to assist you. (Round the weighting to three decimal places and the allocated costs per pound to four decimal places. Round all other amounts to the nearest cent.) Breast Wings Bones Total Thighs 35 Feathers 101 125 25 55 $ 0.25 $ 0.30 $ 0.15 $ 0.10 0.45 $ 1 Pounds of product Wholesale selling price per pound Sales value at splitoff Weighting, Sales value at splitoft Joint costs allocated Allocated costs per pound X - X Data table Requirements Parts Breast 1. Compute the cost of the special shipment destroyed using the following: a. Sales value at splitoff method b. Physical measure method (pounds of finished product) 2. What joint-cost-allocation method would you recommend Quality Chicken use? Explain. Pounds of Wholesale Selling Price per Pound Product When Production is complete 125 $ 0.45 25 0.25 35 0.30 Wings Thighs Bones 55 0.15 Feathers 10 0.10

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