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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 2017 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 2017 is as follows: (Click the icon to view the information.) A special shipment of 40 pounds of breasts and 5 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. Joint cost of production in July 2017 was $50. Total Breast 100 Wings 20 Thighs 30 Bones 45 Feathers 5 Pounds of product Wholesale selling price narnaund no non no 16 Pounds of Product Parts Wholesale Selling Price per Pound When Production is complete 0.65 100 $ Breast Wings 0.20 Thighs 0.30 Bones 0.15 Feathers 0.05 1 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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