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A-One Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July is as follows (Click
A-One Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July is as follows (Click the icon to view the production information) Jont cost of production in July was $75 A special shipment of 40 kilograms of breasts and 20 kilograms of wings has been destroyed in a fire A-One Chicken's insurance policy provides reimbursement for the cost of the tems destroyed. The insurance company permits A-One Chicken to use a joint cost allocation method. The spitoffpoint is assumed to be at the end of the production process Required D Requirement 1a. Calculate the cost of the special shipment destroyed using the sales value at spifoff method Complete the table below to assist you (Round the weighting to three decimal places and the allocated costs per kilogram to four decimal places. Note that due to rounding, the total weighting may not necessanly add to 1 Round at other amounts to the nearest cent) Thighs Bones Feathers Breasts Wings Total Kilograms of product 100 30 50 65 5 Wholesale selling price per kilogram 0.50 $ 0.30 $ 0.35 $ 0.10 $ 0.05 Sales value at splitoff Weighting: Sales value at splitoff Joint costs allocated Allocated costs per kilogram July was $75. 0 kilograms of breasts and 20 kilograms of wings has been destroyed in a fire. policy provide of the productio Production information Wholesale Selling Price per the cost of th Parts Kilograms of Kilogram when Production Product Is Complete o assist you. ( mounts to the Breasts 100 $ 0.50 Wings 30 0.30 Thighs 50 0.35 Bones 65 0.10 er kilogram Feathers 0.05 splitoff ram Print Done mits A-One - X o four decim Required the c assis ounts 1. Calculate 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 A-One Chicken use? Explain. er kild split am Print Done - - X
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