A-One Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2020 follows: E (Click the icon to view the information.) Joint cost of production in July 2020 was $50. Data table Parts Pounds of Wholesale Selling Price per Pound Product When Production is Complete 100 $ 0.40 Breasts 20 0.15 Wings Thighs 30 0.30 Bones 45 0.15 Feathers 5 0.10 A special shipment of 50 pounds of breasts and 10 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. 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 four decimal places. Round all other amounts to the nearest cent.) Breast Wings Thighs Bones Feathers Total 100 20 40 80 10 250 Pounds of product Wholesale selling price per pound 0.45 $ 0.15 $ $ 0.70 $ $ 70.00 $ 0.15 $ 3.00's 18.00 $ 12.00 $ 0.10 1.00 $ 104.00 Sales value at splitoff Weighting: Sales value at splitoff Joint costs allocated 0.673 $ 33.65 $ 0.029 1.45's 0.173 8.65 $ 0.115 5.75 $ 0.010 0.50 $ 1.000 50,00 Allocated costs per pound $ 0.3365' $ 0.0725'$ 0.2163'$ 0.0719'$ 0.0500 (Round your answers to the nearest cent.) The cost of the 40 pounds of breasts is $ 13.46. The cost of the 15 pounds of wings is $ 1.099 Requirement 1b. Compute the cost of the special shipment destroyed using the physical-measure method (pounds of finished product). Complete the table below to assist you. (Round the weighting three decimal places, the allocated costs per pound to four decimal places, and the joint costs allocated to the nearest cent.) Breasts Wings Thighs Bones Feathers Total Pounds of product 100 20 40 80 10 250 Weighting: Physical measures 0.400 0.080 0.160 0.320 0.040 1.000 Joint costs allocated $ 20.00 $ 4.00 $ 16.00's 2.00$ 50.00 Allocated costs per pound $ 0.2000's 0.2000$ 0.2000$ 0.2000'$ 0.2000 8.00 $ (Round your answers to the nearest cent.) The cost of the 40 pounds of breasts is $ 8.00. The cost of the 15 pounds of wings is $ 3.00 Requirement 2. What joint-cost-allocation method would you recommend A-One Chicken use? Explain. The sales-value at splitoff method captures the benefits-received criterion of cost allocation and is the preferred method. The costs of processing a chicken are allocated to products in proportion to the ability to contribute revenue . A-One Chicken's decision to process chicken is heavily influenced by the revenues from breasts and thighs . The bones provide relatively few benefits to A-One Chicken despite their high physical volume