16-21 Joint-cost allocation, insurance settlement. Quality Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2017 is as follows:

Parts Pounds of Product Wholesale Selling Price per pound When production is Complete

Breasts 100 $0.55

Wings 20 $0.20

Thighs 40 $0.35

Bones 80 $0.10

Feathers 10 $0.05

Joint Cost of Production in July 2017 $50:

A special shipment of 40 pounds of breasts and 15 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 split-off point is assumed to be at the end of the production process.

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 finished product)

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

SHOW ALL WORK.