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Choice Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2017 is as follows: (Click
Choice 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 $100. A special shipment of 30 pounds of breasts and 15 pounds of wings has been destroyed in a fire. Choice Chicken's insurance policy provides reimbursement for the cost of the items destroyed. The insurance company permits Choice 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. 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 to 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 200 40 80 160 20 500 Weighting: Physical measures .4 .08 .16 .32 .04 1 Joint costs allocated 26.24 Allocated costs per pound Data table Parts Pounds of Product Wholesale Selling Price per Pound When Production is Complete Breast 200 $ 0.60 Wings 40 0.25 Thighs 80 0.45 Bones 160 0.10 Feathers 20 0.05 Print Done 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 Choice Chicken use? Explain. Print Done
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