7.5

A - One 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 30 pounds of breasts and 15 pounds of wings has been destroyed in a fire. A-One Chicken's insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits A - One Chicken to use a joint-cost-allocation method. The splitoff point is assumed to be at the end of the production process. Read the 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.) Requirements 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 A-One Chicken use? Explain