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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 2020 follows (Click the
A-One Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2020 follows (Click the icon to view the information) Joint cost of production in July 2020 was $100. Data table Parts Breasts Wings Thighs Bones Feathers Pounds of Product 200 $ 40 80 160 20 Wholesale Selling Price per Pound When Production is Complete 0.40 0.20 0.35 0.05 0.05 I A special shipment of 70 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 requirements 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.
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