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Choice Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2020 follows: A special shipment
Choice Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2020 follows: A special shipment of 70 pounds of breasts and 5 pounds of wings has been destroyed in a fire. Choice Chicken's insurance policy provides (Click the icon to view the information.) 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. Joint cost of production in July 2020 was $50. Read the Requirement 1a. Compute the cost of the special shipment destroyed using the sales value at splitoff method. Requirements 1. Compute the cost of the special shipment destroyed using the following: a. Sales value at splitoff method Data table b. Physical-measure method (pounds of finished product) 2. What joint-cost-allocation method would you recommend Choice Chicken use? Explain
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